Filenews 27 May 2022 - by By Chrysanthos Manolis
An agreement to import Israeli gas through Egypt into European markets is being worked out by the European Union, according to Bloomberg. The publication makes no reference to the Cypriot natural gas, the confirmed Aphrodite deposit, for which there is an agreed development plan since 2019 between the Republic of Cyprus and the consortium of companies that manage it, for its transportation by pipeline to Egypt for liquefaction.
Last Monday, Delek's announcement of its imminent participation in the development of the Aphrodite deposit was published in Israeli media, but government sources in Cyprus said there is still no final decision on the scenario to be followed for the gas to be transported to Egypt for liquefaction. A final decision is also pending on the timing of the A3 confirmatory drilling at Aphrodite, which, however, appears to be incorporated into the gas drilling program. The Cypriot side is expecting in the near future a new descent of Chevron representatives to discuss the outstanding issues that exist, in order to activate the '19 agreement and begin, with some delay, the time-consuming process of its implementation. It is not excluded that, in the end, the development programme of Aphrodite will be delayed in order to coincide in time its connection - with a common pipeline - with the possible transfer of part of the Leviathan reserve to Egypt, either for local needs, or for its liquefaction and transfer to European markets, given the increased demand associated with the political decision to de-dependence on Russian gas.
As for the Levyathan deposit, in Israel's EEZ, Bloomberg cites relevant documents that the fuel will be converted into liquefied natural gas in Egypt's processing plants before it is shipped to the EU.
The deal with the EU would open up a new market for Israel, where domestic gas prices are much lower than the prices that companies managing leviathan can charge in Europe.
According to the agency, the shipment of gas quantities to Europe will include Egypt's liquefaction plants in Inku and Damieta. Their use, it is noted, is seen as a more viable option for the gas-rich Eastern Mediterranean region than the option of building new pipelines, which would be costly and would take years to build.
