Israel prepares to reshape the gas market in Europe
Israel’s ambitions in striving to become the main supplier of gas to Europe are reflected in concrete plans. It is reported that the country’s leadership is going to lay a gas pipeline to Italy and build another one to Egypt, which Israel already supplies with gas. This project affects the position of Russia as a major player in the European gas market.
What changes does the gas market in Europe wait for?
The fact that Israel wants to sell gas to Europe became known during the Eastern Mediterranean Gas Forum. According to the country’s Minister of Energy Yuval Steinitz, the pipeline to Italy is planned to be laid through Cyprus and Greece. Thus, it will become the longest similar object in the world. The estimated project cost is about $ 7 billion, which the state will receive from private companies and lenders. If the idea is approved, the pipeline will begin to build in 2020 and finish in 5-6 years
In addition to European expansion, Israel intends to increase gas supplies to Egypt. Yuval Shvaynits also reported this during the forum, a visit to which was the first visit by the Minister of Egypt since 2011, when during the national unrest the country fell into a crisis and at some point even threatened the peace treaty with Israel.
As you know, two countries have long cooperated in energy issues. Therefore, Israel exports about 7 billion cubic meters of gas per year to Egypt via the Sinai Peninsula. However, the new pipeline planned for construction will significantly increase the volume of deliveries. Its creation is part of a $ 15 billion ten-year partnership agreement.
However, there is no final decision on the launch of the project yet. Yuval Steinitz states that negotiations are still underway. However, if Israel and Egypt reach the agreement, then the construction of the gas pipeline that will connect the Israel fields Leviathan and Tamar with Egyptian refineries may also begin next year.
These events are monitored closely by high-ranking officials of the Russian Federation controlling almost a third of the gas market in Europe. Considering problems with the construction of “Nord Stream gas pipeline-2”, Israel’s activity in this direction is definitely not good news for Russia.
