A new agreement between Egypt and Israel to permit direct gas imports to Egypt could impact plans for Israel to pipe gas to Turkey, according to a report by Greek Cypriot daily ‘Cyprus Weekly’.
The change in legislation by Egypt means that Cyprus can supply Egyptian LNG plants with natural gas.
The law will be implemented by the end of the end and meanwhile, some companies are already negotiating to buy gas from Israel’s Leviathan field.
Permitting direct imports to Egypt has eased Israel’s export problems. The South Cyprus government had already submitted a plan, in case there were political issues, to transport natural gas from Leviathan field to Cyprus and then to convey it to Egypt along with the south’s own gas finds.
According to UK publication ‘The Economist’, Israel will longer need to pipe its natural gas reserves to Turkey and have to deal with the issue of the pipe crossing Cyprus’ marine territory, because Egypt offers a better solution. It also notes that the Egyptian LNG plants offer Israel the opportunity to sell its natural gas to the European market via Egypt.
In light of these recent developments and the former cooperation between Israel and Egypt, it almost seems certain that the Israeli-Turkish pipeline will be shelved, reports claim.
Turkish daily ‘Hurriyet’ on July 12, reported that Turkish Energy Minister Berat Albayrak was set to visit Israel by the end of this year to conclude an agreement for the building of a natural gas pipeline from the Jewish state to Turkey.
Cyprus Weekly, Hurriyet