Greece, Italy, Israel and Cyprus back natgas pipeline to Europe
ATHENS (Reuters) — Italy, Greece, Cyprus and Israel agreed on Tuesday to back the construction of a gas pipeline from newly discovered fields in the eastern Mediterranean to Europe.
The project, known as East Med, involves a 2,000-km long pipeline to channel offshore reserves in the Levantine Basin in the far east corner of the Mediterranean to Greece and Italy, at a cost of up to 6 B euros.
The eastern Mediterranean has produced some of the world's biggest gas finds in the past decade, and much of it is still thought to be untapped at a time Europe is looking to diversify its gas resources for reasons of energy security.
"Today we have concluded a very significant milestone, which is the signing of a memorandum of understanding which outlines the political commitment of the four countries to pursue this project," Cypriot Energy Minister Yiorgos Lakkotrypis said during a signing ceremony in the Cypriot capital Nicosia.
The pipeline, he said, was a "very important pillar" in the eastern Mediterranean natural gas corridor.
The four countries also said they would cooperate to facilitate studies, permits, construction and operation of the project, with a view to signing an Intergovernmental Agreement on the project "within 2018", a joint statement said.
Israel has discovered more than 900 Bcm of gas offshore. Cyprus' Aphrodite gas field holds an additional 128 Bcm and Cypriot waters are expected to hold more reserves.
It is estimated the pipeline could transport up to 16 Bcm of gas per year. The project owners are IGI Poseidon, a joint venture between Greece's natural gas firm DEPA and Italian energy group Edison.
Writing by Michele Kambas, editing by David Evans
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At October’s HPI Forecast Breakfast for our sister publication, <i>Hydrocarbon Processing</i>, I shared <i>Gas Processing</i>’s forecast on change in the LNG industry.
In one of the toughest markets in the history of gas compression, we are challenged to deliver more with less.
The New LNG Imperative
The shale gas boom established the US as the world’s leading natural gas producer and is responsible for billions of dollars of investments in the US gas processing industry. Since 2012, the US has witnessed unprecedented growth in new gas processing capacity and infrastructure. This rise is due to greater production of domestic shale gas, which is providing cheap, available feedstock to fuel the domestic gas processing, LNG and petrochemical industries. New gas processing projects include the construction of billions of cubic feet per day of new cryogenic and gas processing capacity, NGL fractionators, multi-billion-dollar pipeline infrastructure projects, and the development of millions of tons per year of new LNG export terminal construction. Attend this webcast to hear from Lee Nichols, Editor/Associate Publisher, Hydrocarbon Processing, Scott Allgood, Director-Data Services, Energy Web Atlas and Peregrine Bush, Senior Cartographic Editor, Petroleum Economist as they discuss the future of LNG and the application of Energy Web Atlas, a web-based GIS platform which allows users to track real-time information for every LNG project.
November 29, 2017 10am CST
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