Eastern Mediterranean LNG No Easy Investment

摘要

With an estimated 35 trillion cubic feet of gas found in the eastern Mediterranean waters between Israel and Cyprus, the two states are working out how to benefit from this offshore bounty. Both sides are looking at methods to supply gas to their respective domestic markets while also considering proposals for international LNG exports. Following talks in early September, Tel Aviv agreed to supply 500 million-700 million cubic meters (18 billion-25 billion cubic feet) of natural gas to Cyprus by 2015. Although the timing may be optimistic, the deal nonetheless allows Nicosia to start switching local power plants from expensive heavy fuel oil and diesel to natural gas. Over the longer term, the Cypriot government is eyeing gas supplies from its own offshore, where US-based Noble Energy has found an estimated 7 Tcf of gross resources at the Aphrodite field. The country needs only 800 MMcm (28 Bcf) annually to cover its power generation needs.