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and you were told israel is a western free market economy
https://www.ft.com/content/78ff60ca-184c-11e7-a53d-df09f373be87
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https://www.ft.com/content/78ff60ca-184c-11e7-a53d-df09f373be87
Israel on Monday formally signalled its ambition to become an exporter of energy to Europe, signing a preliminary agreement with Cyprus, Greece and Italy to pump natural gas across the Mediterranean via a planned $6bn-$7bn pipeline. Sample the FT’s top stories for a week You select the topic, we deliver the news. Select topic Enter email addressInvalid email Sign up By signing up you confirm that you have read and agree to the terms and conditions, cookie policy and privacy policy. The proposed project would be the world’s longest and deepest subsea pipeline. Extending from Israeli and Cypriot offshore gasfields to Greece and Italy, it would run for about 2,200km and reach depths below 3km in places. Yuval Steinitz, Israel’s energy minister, said an initial study showed the project was technologically and financially feasible and could be completed by 2025. “We are here to start a wonderful project of exporting natural gas from the eastern Mediterranean, mainly Israel and Cyprus, to western Europe,” said Mr Steinitz at a ceremony in Tel Aviv, where he and ministers from the three other countries signed a map of the proposed route and a joint declaration on moving ahead with discussions to build it. “This is going to be the longest and deepest subsea pipeline in the world.” However, the project is likely to face tough questions and possible scepticism from the business community amid low gas prices and concerns over political risk. Israel and Cyprus are promoting their gas reserves as an alternative to Russia and the North Sea, the EU’s two main gas suppliers. The bloc is trying to reduce reliance on Russian energy and North Sea reserves are depleted. Israel launched the $3.75bn first phase of its Leviathan gasfield in February and Cyprus recently concluded its third licensing round for offshore blocks. The two countries had 400-500bcm of gas available for export between them, said Mr Steinitz. The amount so far discovered was “just the tip of the iceberg” and Israel could potentially make more than 3,000 bcm of gas available for export within a few years, he added. “We highly value gas supply from the region . . . that can make a valuable contribution to our strategy to diversify our sources and suppliers,” said Miguel Arias Cañete, the EU’s climate and energy commissioner, who attended the ceremony on Monday. Carlo Calenda, Italy’s economic development minister, said the pipeline project was “a top priority for our country”. Giorgos Stathakis, Greece’s energy minister, described Israel as “the most reliable export option”. Mr Steinitz said the four countries aimed to conclude government-to-government agreements by the end of this year. The ministers would then meet every six months as the project got under way, with a target completion date of 2025. For Israel, which has signed preliminary or final gas supply agreements with Jordan, Egypt, and the Palestinian Authority, the pipeline would be its boldest gambit yet in its attempt to become a leading energy exporter. Mr Steinitz said the pipeline might in future be extended to other countries in western Europe or the Balkans The minister said he had discussed the plan and other Israeli energy projectswith JPMorgan, Morgan Stanley, Goldman Sachs and other banks and that potential investor interest was enough to “pave the way for a very good and speedy project”. Speaking earlier to the Financial Times, he said the pipeline would be significantly cheaper to build than liquefied natural gas production and storage facilities, which both Israel and Cyprus have mooted as platforms for their exports. But the initiative is likely to face industry scepticism amid low gas prices and concerns about political risk and Israel’s patchy record with energy investors. Read more Israel’s supreme court blocks Leviathan gasfield deal Judges veto clause barring regulatory change for 10 years Leviathan’s development was delayed by more than a year, first by a legal challenge from Israel’s antitrust watchdog and then by a bitter dispute in the government and Knesset over the regulatory framework for gas reserves. Israel is also discussing a potential undersea gas pipeline with Turkey, which has an unresolved political dispute with Cyprus over the Turkish state in the north of the island. The proposed route would run through Cypriot territorial waters. “I think the industry doesn’t believe in it,” said one energy executive, speaking anonymously. “The government would be better served growing the domestic market and finding solutions to make gas flow to Egypt, Jordan and Turkey.” “It’s a long shot and at this stage it’s a pipe dream,” said Amit Mor, chief executive of Eco Energy, an Israeli consulting firm. “The implementation of such projects sometimes takes decades. There is also a need to establish more proven reserves.” Copyright The Financial Times Limited 2017. All rights reserved. You may share using our article tools. Please don't cut articles from FT.com and redistribute by email or post to the web.
https://www.ft.com/content/78ff60ca-184c-11e7-a53d-df09f373be87
High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our T&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights.
https://www.ft.com/content/78ff60ca-184c-11e7-a53d-df09f373be87
Israel on Monday formally signalled its ambition to become an exporter of energy to Europe, signing a preliminary agreement with Cyprus, Greece and Italy to pump natural gas across the Mediterranean via a planned $6bn-$7bn pipeline. Sample the FT’s top stories for a week You select the topic, we deliver the news. Select topic Enter email addressInvalid email Sign up By signing up you confirm that you have read and agree to the terms and conditions, cookie policy and privacy policy. The proposed project would be the world’s longest and deepest subsea pipeline. Extending from Israeli and Cypriot offshore gasfields to Greece and Italy, it would run for about 2,200km and reach depths below 3km in places. Yuval Steinitz, Israel’s energy minister, said an initial study showed the project was technologically and financially feasible and could be completed by 2025. “We are here to start a wonderful project of exporting natural gas from the eastern Mediterranean, mainly Israel and Cyprus, to western Europe,” said Mr Steinitz at a ceremony in Tel Aviv, where he and ministers from the three other countries signed a map of the proposed route and a joint declaration on moving ahead with discussions to build it. “This is going to be the longest and deepest subsea pipeline in the world.” However, the project is likely to face tough questions and possible scepticism from the business community amid low gas prices and concerns over political risk. Israel and Cyprus are promoting their gas reserves as an alternative to Russia and the North Sea, the EU’s two main gas suppliers. The bloc is trying to reduce reliance on Russian energy and North Sea reserves are depleted. Israel launched the $3.75bn first phase of its Leviathan gasfield in February and Cyprus recently concluded its third licensing round for offshore blocks. The two countries had 400-500bcm of gas available for export between them, said Mr Steinitz. The amount so far discovered was “just the tip of the iceberg” and Israel could potentially make more than 3,000 bcm of gas available for export within a few years, he added. “We highly value gas supply from the region . . . that can make a valuable contribution to our strategy to diversify our sources and suppliers,” said Miguel Arias Cañete, the EU’s climate and energy commissioner, who attended the ceremony on Monday. Carlo Calenda, Italy’s economic development minister, said the pipeline project was “a top priority for our country”. Giorgos Stathakis, Greece’s energy minister, described Israel as “the most reliable export option”. Mr Steinitz said the four countries aimed to conclude government-to-government agreements by the end of this year. The ministers would then meet every six months as the project got under way, with a target completion date of 2025. For Israel, which has signed preliminary or final gas supply agreements with Jordan, Egypt, and the Palestinian Authority, the pipeline would be its boldest gambit yet in its attempt to become a leading energy exporter. Mr Steinitz said the pipeline might in future be extended to other countries in western Europe or the Balkans The minister said he had discussed the plan and other Israeli energy projectswith JPMorgan, Morgan Stanley, Goldman Sachs and other banks and that potential investor interest was enough to “pave the way for a very good and speedy project”. Speaking earlier to the Financial Times, he said the pipeline would be significantly cheaper to build than liquefied natural gas production and storage facilities, which both Israel and Cyprus have mooted as platforms for their exports. But the initiative is likely to face industry scepticism amid low gas prices and concerns about political risk and Israel’s patchy record with energy investors. Read more Israel’s supreme court blocks Leviathan gasfield deal Judges veto clause barring regulatory change for 10 years Leviathan’s development was delayed by more than a year, first by a legal challenge from Israel’s antitrust watchdog and then by a bitter dispute in the government and Knesset over the regulatory framework for gas reserves. Israel is also discussing a potential undersea gas pipeline with Turkey, which has an unresolved political dispute with Cyprus over the Turkish state in the north of the island. The proposed route would run through Cypriot territorial waters. “I think the industry doesn’t believe in it,” said one energy executive, speaking anonymously. “The government would be better served growing the domestic market and finding solutions to make gas flow to Egypt, Jordan and Turkey.” “It’s a long shot and at this stage it’s a pipe dream,” said Amit Mor, chief executive of Eco Energy, an Israeli consulting firm. “The implementation of such projects sometimes takes decades. There is also a need to establish more proven reserves.” Copyright The Financial Times Limited 2017. All rights reserved. You may share using our article tools. Please don't cut articles from FT.com and redistribute by email or post to the web.
