Showing posts with label natural gas. Show all posts

Friday, March 3, 2017

Joel C. Rosenberg's Blog: Fruits of peace? Israel has started exporting natural gas to Jordan.

New post on Joel C. Rosenberg's Blog

Fruits of peace? Israel has started exporting natural gas to Jordan. Also developing export deals with Egypt, Greece, Cyprus & Turkey. Here’s the latest.

(Central Israel) -- It's not just talk. If you look closely, there are actually tangible signs of peace and economic cooperation between Israel and her neighbors.

Taken Jordan, for example. The Hashemite Kingdom signed a peace treaty with the Jewish State in 1994. While there remain many political sensitivities in the relationship, the two countries continue to develop ever closer security and economic ties. This week, we're learning how the quiet cooperation between the two countries has taken another important step.

"An Israeli company said Thursday it has started exporting gas from an offshore field to Jordan, marking the country’s first ever exports of natural gas," reported the Times of Israel. "The exports to Jordan began in January, Delek Drilling — part of a consortium leading the development of Israel’s offshore gas reserves."

With almost no oil or gas resources of its own, Jordan currently imports 97% of its energy needs. I'm encouraged that the Israeli government and the Israeli and American companies drilling for natural gas off the Mediterranean coast were willing to make their first export deal with Jordan, a good neighbor and partner for peace.

I'm also encouraged by the fact that the leaders of Jordan want to cooperate with Israel on such an important energy project, despite some political opposition.

But Jordan isn't the only story.

For many years since the 1979 Camp David accords, Egypt has been selling natural gas from the Sinai to Israel. Recent reports indicate Israel and Egypt are looking for new ways to explore for more gas and cooperate in exporting natural gas.
Israel and Turkey are also working on a natural gas deal that could be finalized in 2017.
Israel, Greece and Cyprus are reportedly developing plans for a natural gas pipeline.

Let's keep praying for peace -- but let's also be grateful for the tangible progress that has been made already.

Excerpts from the Times of Israel article:

There was no formal announcement at the time but it is the first time Israel has ever exported natural gas, a company spokeswoman said.
Jordanian firms Arab Potash and Jordan Bromine signed a deal in 2014 to import 2 billion cubic metres (around 70 billion cubic feet) of gas from Israel’s Tamar field over 15 years....
Jordan is one of only two Arab countries to have a peace deal with Israel but the 1994 agreement is unpopular among Jordanians — almost half of whom are of Palestinian origin.
Detractors of the gas deal, including Jordan’s main opposition Islamist party, reject any cooperation with a country they regard as an enemy....
In September 2016, a larger deal worth an estimated $10 billion was signed to export gas from the Leviathan offshore field to Jordan.
In the face of protests, Jordanian Information Minister Mohamed Momani defended the deal, telling state television it would cut $600 million a year from the state’s energy bill. Deliveries from Leviathan are expected to begin in 2019.

More coverage:

Israel's natural gas already flowing to Jordan (Israel Hayom)
Israel Quietly Begins Exporting Natural Gas to Jordan Amid Political Sensitivities (Haaretz)

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joelcrosenberg | March 3, 2017 at 8:22 am | Categories: Epicenter | URL: http://wp.me/piWZ7-74T

Monday, September 29, 2014

The Economic Miracle of Israel's Natural Gas Fields

Monday, September 29, 2014 | Tsvi Sadan ISRAEL TODAY

TOPICS:

Oil

Thirty years ago I visited an oil rig at Atlit, a town on the Mediterranean shore just south of Haifa. It had been erected by an American Christian company whose CEO, citing a peculiar interpretation of a biblical promise to the Tribe of Asher (Deut. 33:24), was certain he’d find huge quantities of oil beneath the western border of that tribes ancient territory.

The company ended up losing millions of dollars. But just 15 years later, Israel discovered vast natural gas fields a mere 50 miles west of Atlit in the depths of the Mediterranean, suggesting that these Christian dreamers weren’t terribly off the mark by believing God would bless Israel with significant amounts of fossil fuels.

[Editor’s Note: The Christian company referenced above is Zion Oil & Gas, which continues to search for oil in Israel, and was featured in the October issue of Israel Today Magazine, which is available for free to our newsletter subscribers. SIGN UP TODAY to read it >>]

Thirty-five trillion cubic feet of gas worth some USD $500 billion has been found in Israel’s “economic waters,” with the Leviathan field being by far the largest. To give some kind of reference point, Israel’s national expenditures for 2013 totaled USD $114 billion.

More importantly than covering the national budget is the fact that, for the first time in history, Israel has the opportunity to become energy-independent, as well as a major exporter of natural gas.

Theoretically, these natural gas reserves have the potential to transform Israel’s economy. Indeed, experts say that this gas alone can shave 25 percent off Israel’s annual national budget for the next 25 years.

A find of such epic proportions should elicit great excitement. Instead, it is buried beneath political apprehension and narrow financial interests.

Ever since the Leviathan discovery, Turkey and Lebanon have challenged Israel’s right to the reserves. Threats emanating from both countries have forced Israel to spend upwards of USD $1.3 billion to secure its claims. This diplomatic tension could be one reason the Israeli government has curbed its enthusiasm over the find.

Additionally, the narrow financial interests of private companies have stymied lively public discussions over this newfound national treasure in favor of hushed corporate dealings.

Reluctant as Jerusalem may be to publicly discuss the off-shore gas fields, and even as the companies involved shovel off as much of the profits as possible, the fact is that Israel is already benefiting from this recent discovery.

Since 2010, Israel’s major electric plants, which until recently operated almost exclusively on dirty imported coal, have been transitioning to natural gas. By 2040, it is estimated that 70 percent of Israel’s electricity will be gas-generated.

In addition to this clear economic and environmental advantage, Israeli gas will enable the Jewish state to switch from being energy-dependent to being an energy provider. Israel has already signed a USD $15 billion gas contract with neighboring Jordan, and other countries in the region and further abroad will certainly become customers in the near future.

Though the handling of this important national resource remains a matter of concern for many Israelis who feel that simple taxation on profits is inadequate, there is still hope that most of the gas and its revenues will be used for the direct benefit of Israel’s citizens, many of whom are struggling financially.

If handled properly, this gas can turn out to be a blessing from heaven.

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Wednesday, August 21, 2013