Israel-Turkey gas pipeline an option for Russia-wary Europe -sources

The manufacturing platform of Leviathan pure gasoline subject is seen within the Mediterranean Sea, off the coast of Haifa, northern Israel June 9, 2021. REUTERS/Amir Cohen

ANKARA/JERUSALEM, March 29 (Reuters) – A Turkey-Israel gasoline pipeline is being mentioned behind the scenes as certainly one of Europe’s alternate options to Russian power provides, however it is going to take difficult maneuvering to achieve any deal, authorities and trade officers in each nations say.

The concept, first conceived years in the past, is to construct a subsea pipeline from Turkey to Israel’s largest offshore pure gasoline subject, Leviathan. Gasoline would move to Turkey and on to southern European neighbors trying to diversify away from Russia.

Turkish President Tayyip Erdogan stated final week that gasoline cooperation was “probably the most essential steps we are able to take collectively for bilateral ties,” and instructed reporters he was able to ship prime ministers to Israel to revive the pipeline concept that has lingered for years.

A senior Turkish official instructed Reuters talks have continued since Israeli President Isaac Herzog visited Ankara earlier this month and “concrete choices” may comply with in coming months on a proposed route and taking part entities.

Business officers are extra circumspect, nonetheless, saying manufacturing restraints and geopolitics may depart the plan lifeless within the water.

The Leviathan subject already provides Israel, Jordan and Egypt. Its homeowners – Chevron (CVX.N) and Israeli corporations NewMed Power and Ratio Oil (RATIp.TA) – plan to crank up manufacturing from 12 to 21 billion cubic meters (BCM) a 12 months.

By comparability, the European Union imported 155 billion cubic meters of Russian gasoline final 12 months, overlaying near 40% of its consumption.

A lot of the additional gasoline output might be liquified and exported on ships to Europe or the Far East, in accordance with NewMed. Its chief govt stated final month Turkey may turn into a vacation spot too, however wanted to place “pores and skin within the sport” and decide to constructing the pipeline.

Requested about talks with Turkey, the Leviathan companions declined to remark.

Israeli Power Minister Karine Elharrar instructed Ynet information on Sunday many concerns had but to be mentioned, together with the funds.

“It must be discovered economically possible, which isn’t one thing self-evident,” she stated.

ENERGY BRIDGE

Israel and Turkey want to put a decade of diplomatic impasses, often over Israeli-Palestinian points, behind them. Power partnership might be key, particularly after Russian invasion of Ukraine made Europe extra decided to search out alternate options to its power provides.

“There was a current rapprochement with Israel and we would like its gasoline to transit Turkey en path to Europe,” stated one other Turkish official. “Israel is trying positively on this, some talks have been held and there’s a will to do it.”

Turkey consumes about 50 billion cubic meters of pure gasoline a 12 months and imports practically all of that, most by way of pipelines from Russia, Iran and Azerbaijan. It’s properly positioned as a transport hub within the area the place power politics might be heated.

Citing Iraqi and Turkish officers, Reuters has reported {that a} plan to convey, with Israel’s assist, gasoline from Iraq’s Kurdistan area to Turkey and Europe is a part of what triggered Iran’s missile assault on the Kurdish capital Erbil this month. learn extra

“Turkey is of nice curiosity, for its home consumption in addition to a channel to nations in southern Europe,” stated a senior official within the Israeli gasoline sector.

The issue, the official stated, is that there have been already two proposed routes for the additional provides from Leviathan: by way of present LNG vegetation in Egypt or a deliberate floating LNG facility.

“If Turkey responds shortly then it might be a 3rd various,” the official stated.

The pipeline would run 500-550 km and price as much as 1.5 billion to construct, in accordance with Israeli officers, making it extra manageable than the 6 billion euro pipeline EastMed proposed to attach Israel with Cyprus, Greece and Italy.

Nevertheless, any subsea line would wish to cross waters of both Cyprus, which Ankara doesn’t acknowledge, or Syria, with which Ankara has no diplomatic relations and has backed rebels combating the federal government in Damascus.

This might complicate development and financing if Turkey had a direct stake within the pipeline, stated Gokhan Yardim, a Turkish gasoline trade guide who labored on the evaluation of the attainable pipeline over twenty years.

Two earlier assessments had been based mostly on 8 to 10 billion cubic meter gasoline flows, and something much less might not be possible, Yardim stated.

Reporting by Orhan Coskun in Ankara and Ari Rabinovitch in Jerusalem; Extra reporting by Can Sezer in Istanbul; Modifying by Jonathan Spicer and Tomasz Janowski

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