The energy ministries of Israel and Cyprus are discussing “issues of mutual interest and possible cooperation” following reports of an imminent natural gas supply agreement, S&P Global reported on Monday.
A spokesperson for Israel’s Ministry of Energy and Infrastructure told S&P Global Commodity Insights on 14 October that ongoing conversations were taking place with their Cypriot counterpart, citing strong bilateral relations.
According to a 9 October report by ynet.com, the proposed deal is valued at $1.5 billion and would span 10 years, with gas supplied via pipeline from Israel’s Karish and Tanin rigs to Cyprus. If finalised, this would mark Israel’s first gas sale to Europe.
Energean, the operator of the Karish gas field offshore Israel, confirmed it had submitted an export licence request to Cyprus and previously proposed a pipeline solution. The company referred questions about a potential contract to Israel’s energy ministry.
Gas from Karish is currently produced through the Energean Power FPSO, which has an 8 billion cubic metres per year capacity, supplying the domestic Israeli market.
Israel has become a significant gas producer, with existing exports to Egypt and Jordan. The country’s gas output reached a record 24.7 billion cubic metres in 2023, according to Israeli Energy Ministry data released in May.
Karish, which began production in October 2022, yielded 2.77 billion cubic metres in the first half of 2023, up from 1.97 billion cubic metres in the same period last year.
Israel’s gas production also comes from the Leviathan field, operational since 2019, and the Tamar field, which began production in 2013.
Read more:
