Israeli gas supply to Europe is a part of the Southern Gas Corridor concept, Sohbet Karbuz, Director of Hydrocarbons, Mediterranean Energy Observatory (OME).
He was commenting on the possibility of building a gas pipeline from Israel to Turkey and further to Europe.
“Building a pipeline from Israel to Turkey depends on many parameters, including political, commercial, financial and legal. Of these, commercial parameter is of paramount interest,” said the expert.
Karbuz pointed out that if the landing price of the Israeli gas is not competitive and yet there is still a will to bring it to Europe, then one needs to ask whether buyers are ready to pay a premium for the sake of diversification of gas supply sources and routes.
“Southern Gas Corridor aims to bring Caspian, Central Asian, Middle Eastern and East Mediterranean gas into European markets. So, in fact bringing gas from Israel to Europe either through Turkey or through Greece is part of the Southern Gas Corridor concept. The intention is to improve Europe’s gas supply security by diversifying away from Russian gas,” he added.
Earlier, Israeli Minister of National Infrastructures, Energy and Water Resources Yuval Steinitz said during the 22nd World Petroleum Congress in Istanbul that Turkey and Israel intend to sign an agreement on construction of a gas pipeline to Europe by late 2017.
“We are confident that in the future, Europe will buy gas produced in the Eastern Mediterranean. Currently, intensive talks are underway on building two pipelines. We plan to build one of them to Turkey and further to Europe. Another pipeline is planned to be constructed through South Cyprus and Greece to Italy,” said the minister.
The Southern Gas Corridor is one of the priority energy projects for the EU. It envisages the transportation of gas from the Caspian region to the European countries through Georgia and Turkey.
At the initial stage, the gas to be produced as part of the Stage 2 of development of Azerbaijan's Shah Deniz field is considered as the main source for the Southern Gas Corridor projects. Other sources can also connect to this project at a later stage.
As part of the Stage 2 of the Shah Deniz development, the gas will be exported to Turkey and European markets by expanding the South Caucasus Pipeline and the construction of Trans Anatolian Natural Gas Pipeline and Trans Adriatic Pipeline.
World media monitoring