Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

COP27: Israel says big boost in gas supply to Europe will take years

Published 11/11/2022, 01:44 PM
Updated 11/11/2022, 02:23 PM
© Reuters.

SHARM EL-SHEIKH, Egypt (Reuters) - Israel will require several years before it can significantly increase its natural gas supplies to Europe, the country's energy ministry said on Friday.

Israel and neighboring Egypt had signed a memorandum of understanding with the European Union in June to ship more gas to the bloc as it seeks to diversify away from Russia.

Asked when new supplies would be delivered under that framework deal, Lior Schillat, the director-general of the Ministry of Energy, said it would be a while.

"In the short term, there will be some increase but the big numbers will come later," he told Reuters on the sidelines of the COP27 climate summit in Egypt.

Israel has become an energy exporter following a number of offshore gas discoveries over the past decade. It has been increasing the amount it sells to neighbors Egypt and Jordan and is studying the option of shipping more to Egypt, where it can be liquefied and sold to more distant markets as LNG.

Schillat said that Israel was expecting to be able to sharply increase its gas production over three to four years, possibly doubling it, which would provide significant volumes above and beyond its domestic needs for export.

He said Israel was preparing for this by exploring ways to expand pipeline capacity to Egypt.

"It is true that most of our surplus gas will be created in the next three to four years," he said.

"So clearly, it's not an immediate ability to supply gas in the in the short term. We're talking about a relatively low amount here," he said.

Israel has a few offshore gas fields. The largest, Leviathan, is mostly earmarked for export

© Reuters. FILE PHOTO: A view of a logo of the COP27 climate summit in Sharm el-Sheikh, Egypt, November 11, 2022. REUTERS/Mohamed Abd El Ghany/File Photo

Output from Leviathan was 2.8 billion cubic meters in the second quarter of 2022, 2.0 BCM of which went to Egypt and Jordan.

Israel is awaiting a proposal from Leviathan's operators NewMed and Chevron Corp (NYSE:CVX) to expand the field, Schillat said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.