Club Med: Israel, Egypt, and Others Form New Natural Gas Group - Foreign Policy - 0 views
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shared by Ed Webb on 19 Jan 19
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a forum joining Israel, Egypt, Cyprus, and other neighbors to develop their new natural gas discoveries. The Eastern Mediterranean Gas Forum, announced Monday in Cairo, formalizes growing energy ties among recent rivals and could spur much-needed development of energy infrastructure required to tap the region’s potential as a source of energy for Europe and beyond. The forum in particular cements the growing commercial links between Israel and Egypt; Israel expects to start shipping natural gas to Egypt in the next few months as part of a landmark, $15 billion deal between the two countries.
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a few notable absences, including Syria and Lebanon—both of which are trying to develop potential offshore gas fields—and especially Turkey
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The new body will promote “discussions among countries that already have cooperation with each other,” said Brenda Shaffer, an energy expert at Georgetown University. “Hopefully, in the next round of the forum, Turkey will be involved, and that would make it much more significant and not just include the happy campers.”
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even with the creation of the new organization and increased energy exploration, the Eastern Mediterranean has a long way to go to truly become the kind of energy hub that many in the region and even in Brussels hope to see. The European Union’s top energy official, for instance, has repeatedly pointed to the Eastern Mediterranean’s potential as an alternative source of energy to importing gas from Russia, and Egypt dreams of again becoming an exporter of natural gas to Europe, as it was until 2012
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grandiose plans, such as a pipeline snaking across to southern Europe via Crete, keep colliding with political and economic realities. Deep waters and high costs make building a pipeline to Europe an expensive proposition
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Another option to market the gas would be to build liquefied natural gas (LNG) terminals; liquefied gas can be shipped on tankers around the world. But the problem, aside from the upfront cost of building the expensive infrastructure needed to superchill natural gas, is the economics of the gas trade, especially when it comes to competing with Russian energy supplies to Europe. LNG costs a lot more than natural gas shipped through a pipeline, and Russian gas is especially cheap.
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Tapping its own natural gas fields would enable Cyprus to replace costly energy imports and power its economy. Israel has already turned its first offshore gas discoveries into a new, cleaner source of electricity, and the country hopes to phase out coal entirely over the next decade. Egypt, too, is using domestic natural gas resources to keep the lights on and factories running, and natural gas demand there is expected to keep growing and potentially gobble up whatever is produced by additional offshore discoveries.