Israel and Cyprus agree on landmark LNG gas export project

Israel and Cyprus are edging closer to a deal that would establish a gas pipeline from Israel’s reserves to Cyprus, from where an LNG plant would be able to distribute to lucrative European and Asian markets. Talks between the countries have taken place for years, but the latest plan has relevance because it essentially halves the EastMed project, which was vetoed by Turkey’s president over concerns that it enriched regional rivals rather than Ankara. In addition to the economic benefit of new supply lines of gas, Israel’s ministers believe the deal would raise its international standing and said it would strengthen its position in Europe in particular.

If the agreement is successfully negotiated, Cyprus and Israel will benefit from greater exports. The LNG platform offers the additional possibility of exports to Asia where there is also great demand for liquefied natural gas. Talks between the countries have not been easy over the years and this latest deal is seen as offering new frontiers for development and a pathway for monetisation of large gas reserves in the eastern Mediterranean. The closer the deal comes to conclusion, the earlier Israel’s hope of reaching new heights in the energy market in Europe and beyond could become a reality.

Tags: Cyprus


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