Sensitive offshore gas field key to Israeli energy strategy
Israel and Lebanon, still technically at war, have been in on-off US-brokered talks since 2020 to demarcate their Mediterranean border, which could allow both countries to boost offshore natural gas exploration. .
But the Karish gas field has emerged as a potential pitfall.
Israel says Karish, licensed to London-listed Energean, is entirely in its exclusive economic zone.
Lebanon has claimed that part of the field is falling into its own waters.
The powerful Lebanese Shia movement Hezbollah launched unarmed drones at Karish in July after Energean fielded a production ship. It has threatened attacks if Israel continues its extraction.
Israeli officials have consistently said Hezbollah’s threats against Karish would not deter production, stressing that control of the field was not in question.
“Israel believes it is both possible and necessary to agree on a maritime border between Lebanon and Israel in a way that will serve the interests of the citizens of both countries,” Prime Minister Yair Lapid said in a statement on Monday.
“The production of gas from the Karish rig is not linked to these negotiations, and production of gas from the rig will start as soon as possible,” he added.
For Israel, ensuring the production of Karish is critical to achieving its goal of increasing energy exports to Europe, which seeks to fill the supply gaps caused by declining Russian sales due to the war in Ukraine.
“We are going to be part of the effort to replace Russian gas in Europe,” said Lapid, who stood next to German Chancellor Olaf Scholz in Berlin last week.
Israel aimed to supply “10 percent” of what Moscow supplied to Europe ahead of Russia’s invasion of Ukraine in February, Lapid said.
– Tensions in Lebanon –
Israel’s options to boost gas exports to Europe are complex and challenging.
But experts agree that the best short-term option is to ramp up sales to Egypt, allowing Israeli gas to liquefy before shipping to Europe.
Israel and Egypt signed an agreement until June to work together on that effort.
But if Israel wants to send more gas from its Leviathan and Tamar fields to Egypt while meeting its domestic energy needs, it must “have stable production of Karish,” Israeli gas industry specialist Gina Cohen told CEN.
She said Israeli plans to increase exports to Europe also depend on expanding the capacity of the existing pipeline to Egypt.
Despite “Lapid talk,” Israel “isn’t there yet,” she said.
Israel’s longer-term gas export goals could be met by building a pipeline to Turkey, a scenario with brighter prospects amid warming ties between Ankara and Israel.
But officials estimate this could take up to three years and cost $1.5 billion.
Another option is the EastMed project, a proposed seabed pipeline linking Israel to Cyprus and Greece, but there are also concerns about the cost and viability of that project.
During the US-brokered talks, Lebanon initially demanded 860 square kilometers (330 square miles) in the disputed sea area, but then asked for another 1,430 square kilometers, including part of the Karish field.
Beirut changed its position in June, telling US envoy Amos Hochstein it was willing to withdraw its demand for territory where Israel wanted to extract gas in the short term.
But Hezbollah’s threats against Karish have persisted, and former Israeli general Amir Avivi warned that the risk of hostilities is possible even if both governments want to see increased, stable gas production.
“Hezbollah is actually using the Karish issue and this maritime dispute to show that they are the ones who care about Lebanon’s interests,” he said.
Cyprus, Israel pledge quick deal in gas field dispute
NICOSIA, Cyprus (AP) — Israel and Cyprus said Monday that they have made “significant” headway in resolving a long-running dispute over an offshore natural gas deposit and say they are committed to quickly reaching a deal as Europe looks for new energy sources.
Cyprus Energy Minister Natasa Pilides and her Israeli counterpart, Karine Elharrar, held talks in the Cypriot capital, pledging to press toward a “fair and swift resolution.”
Israel claims that a portion of Cyprus’ Aphrodite deposit estimated to hold some 4.4 trillion cubic feet of natural gas falls inside its nearby Ishai field, along an offshore demarcation line that separates the two countries' exclusive economic zones.
Negotiations have stretched for several years, but Europe’s need to wean itself off Russian energy sources since the war in Ukraine appears to have added a new sense of urgency to the talks. Russia has cut back natural gas supplies to Europe, driving up prices.
“In light of the global energy crisis and the growing need for natural gas in Europe, I believe it is in our best interest that both parties should expedite a swift, transparent and fair settlement,” Elharrar said in a joint statement. “The trust between us and the continuation of fruitful cooperation in the various fields are very important for both parties.”
Pilides said the sides have made “significant progress” in fleshing out a roadmap that an expert appointed by both countries will follow to hammer out a compromise deal, adding that discussions will continue in the following weeks.
“Cyprus and Israel share a common vision for fully unlocking the potential of Eastern Mediterranean gas resources, thereby diversifying energy sources and routes to Europe,” Pilides said.
Chevron and partners Shell and Israeli NewMed Energy own the drilling rights to the Aphrodite field and have said that a plan to develop the deposit will be ready by the end of the year. Another well will be drilled in the coming months to gather additional information about the deposit’s size.
Pilides said last month that processing extracted gas at facilities in Idku, Egypt, is among the four development options being studied.
Prospects for the Aphrodite field as well as other gas deposits discovered off Cyprus received a boost after the European Union confirmed that natural gas could act as a bridge fuel until 2050 as part of the bloc’s transition to cleaner energy. Environmental groups have begun legal challenges, accusing the EU of derailing its commitment to reducing greenhouse gas emissions.
Menelaos Hadjicostis, The Associated Press
Israeli PM vows to begin production in contested gas field
JERUSALEM (AP) — Israel's prime minister on Monday vowed to begin production at a contested Mediterranean natural gas field “as soon as it is possible,” threatening to raise tensions with Lebanon's Hezbollah militant group.
Yair Lapid's announcement in a statement from his office came at a sensitive time in long-running efforts by a U.S. mediator to resolve a dispute over the countries' maritime border. U.S. officials have said they are making progress, but need more time to reach a solution.
Lapid said it is “both possible and necessary” to reach an agreement with Lebanon, which he said would benefit both countries and “strengthen regional stability.”
But he said that production from the Karish gas field is not connected to the negotiations and “will commence without delay, as soon as it is possible.”
Israel set up a gas rig at Karish in June, saying the field is part of its U.N.-recognized exclusive economic zone. Lebanon insists Karish is in disputed waters.
In July, the Israeli military shot down three unarmed Hezbollah drones flying over the Karish field. Hezbollah’s leader issued a warning to Israel over the maritime dispute, saying that “any arm” that reaches to steal Lebanon’s wealth “will be cut off.”
The heavily armed Hezbollah, which fought a monthlong war against Israel in 2006, has repeatedly said in the past that it would use its weapons to protect Lebanon’s economic rights. Still, Hezbollah officials have said they would endorse a deal reached between Lebanon’s government and Israel. Israel considers Hezbollah to be one of its greatest threats.
The two countries, which have been officially at war since Israel’s creation in 1948, both claim some 860 square kilometers (330 square miles) of the Mediterranean Sea. Lebanon hopes to unleash offshore oil and gas production as it grapples with the worst economic crisis in its modern history.
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