[ad_1]
Israel has agreed to ship extra pure fuel to Egypt, probably stabilizing future LNG exports to Europe as Egypt balances requires extra provide and home demand.
Israeli Power Minister Israel Katz mentioned in a publish on X, previously Twitter, that he had signed an settlement with Egypt to permit for added fuel assets from the Tamar subject to be exported.
“The step will enhance the state’s revenues and strengthen the political relationship between Israel and Egypt,” Katz mentioned Wednesday. The ministry had not disclosed particulars on the volumes that could possibly be added to Israel’s already prolific exports to Egypt.
[What’s Coming? LNG Insight is now offering NGI’s North American LNG Project Tracker for clients to quickly see developments across the U.S., Canada and Mexico. Download the data sheet now.]
Israel has two developed pure fuel fields, Tamar and the bigger Leviathan, however the nation has no liquefaction amenities. Israel began fuel exports to Egypt final 12 months. Since then, Israel has delivered a mean of 5 billion cubic meters/12 months (Bcm/y) of fuel to Egypt by way of the Ashkelon-Arish subsea Jap Mediterranean Fuel (EMG) pipeline.
Chevron Corp., which operates the Tamar and Leviathan fields, reported common Tamar manufacturing final 12 months at 216 MMcf/d. Leviathan manufacturing was reported at 386 MMcf/d. Final 12 months, Chevron and the Tamar companions sanctioned a 3rd pipeline from the Tamar subject to extend capability.
Katz’s announcement of the settlement got here after a sequence of X posts pushing again on criticism of Israel’s export plan. Israeli Funds Director Yogev Gardos, in a letter to the Power Ministry in June, said that Israel wanted to look at its export insurance policies, given the rise in home fuel demand.
The Tamar and Leviathan fields meet round 70% of Israel’s electrical energy demand, in line with the Worldwide Power Company. The remaining consumption is met by coal and a rising quantity of photo voltaic technology.
In 2022, the nation launched its fourth spherical of bids for offshore exploration licenses, providing 25 blocks. Israel’s confirmed fuel reserves had grown on the finish of final 12 months to 1,087 Bcm from 780 Bcm in 2012, in line with a current report commissioned by the Israeli Pure Fuel Commerce Affiliation.
The settlement with Israel comes as Egypt prepares to restart LNG exports to Europe after virtually three months of absence from the market. Whereas imports of pipeline fuel from Israel and Jordan have helped Egypt revive plans of turning into a significant fuel exporter, it has additionally coincided with an increase in home fuel consumption.
As scorching warmth settled in over the area, Egypt and Jordan imported one LNG cargo every in the course of the month of July to satisfy demand for gas-fired energy technology, in line with Kpler information.
The squeeze on Egyptian output has additionally meant much less out there LNG provide for Europe.
Egypt, Israel and the European Union signed cooperative agreements final 12 months for pure fuel provide. After the agreements, LNG output to bloc international locations grew from 1 million tons (Mt) in 2021 to three.3 Mt, in line with Kpler. So far this 12 months, 0.78 Mt of Egyptian LNG has made its approach to EU international locations.Notably, Dutch Title Switch Facility spot costs have comparatively collapsed versus the identical interval final 12 months, giving much less incentive for Egypt to prioritize exports over home provide.
The publish Israel Agrees to Export Extra Pure Fuel to Egypt, Lifting Potential LNG Provide for Europe appeared first on Pure Fuel Intelligence
[ad_2]
Source_link
