web analytics
October 22, 2014 / 28 Tishri, 5775
At a Glance
InDepth
Sponsored Post
Meir Panim with Soldiers 5774 Roundup: Year of Relief and Service for Israel’s Needy

Meir Panim implements programs that serve Israel’s neediest populations with respect and dignity. Meir Panim also coordinated care packages for families in the South during the Gaza War.



Israeli Gas, Iranian Missles, and the Russian Price Tag

Russian President Vladimir Putin meets with Israeli Prime Minister Benjamin Netanyahu

Russian President Vladimir Putin meets with Israeli Prime Minister Benjamin Netanyahu
Photo Credit: Marc Israel Sellem/Flash90

In the on-going debate over an Israeli attack on Iran, attention has largely focused over the last few weeks on Israel and America, for good reason. But what about Russia? A very senior person in the Israeli gas industry tells me: “The Russians have been poking around here for a while. Everyone knows about the Russian interest in controlling the European energy market. Do they want to buy from us, or delay our efforts? I don’t know. But they are here.”

In early July, the Israeli energy and infrastructure news website “Thastiot” claimed that during Vladimir Putin’s much publicized visit to Israel, Putin and Israeli Prime Minister Netanyahu agreed to form a junior company to Gazprom – the Russian oil and gas giant—which would help develop Israel’s biggest gas field, the recently discovered reserves in the eastern Mediterranean, the so-called “Levyatan” (Leviathan) reserves.

“Eventually Israeli gas will be exported to the far east,” Ohad Marani, CEO of IDLC energy which is already drilling the Myra, said to me. For him, the question is purely economic. “In the Far East we will see three times what we see in Europe. While we won’t be able to keep the whole margin, it’s surely better than any European option, which would involve an expensive pipe.”

The senior industry veteran with whom I spoke is not quite sure. Yes, the Far East has unlimited demand (“The Japanese are lessening their reliance on nuclear, and the Chinese can never have enough”) but the European market remains relevant and we have this massive amount of gas already discovered or to be discovered. The US geological survey (USGC) estimates that gas reserves in the eastern Mediterranean amount to 345 trillion cubic feet while Russian gas reserves in Siberia are estimated at 643 tcf.

Big business! With lots of Russians having come and gone to Israel on this question, one wonders about the relationship between the gas deal and Russian involvement on the Iran question.

The same week Putin visited Netanyahu in Jerusalem, Eurasia monitor published that:

“the government agency that oversees Russia’s arms exports and imports… confirmed that Iran is suing Russia for damages to the tune of some $4 billion in the Court of Arbitration in Geneva for cancelling in 2010 a contract to sell five divisions of the S-300 long-range antiaircraft missile system worth an estimated $800 million to $1 billion.”

By some estimates the worth of the Levayatan gas-field might be 15 billion dollars say Gilad Alper, the gas industry analyst at the Excellence Investment house. It trades today at a price of 3 billion dollars.

Another way to look at it: Levayatan contains 473 billion cubic meters of gas. Gazprom exported 150 billion cubic meters of Gas to Europe in 2011, at a price of 384$ per thousand cubic meters – revenue of 57.6 billion dollar—this year Gazprom raised the price to 415$, an 8% increase that will generate another 4.6 billion dollar of revenue to Gazprom. What would be the cost of keeping Israeli competition neutralized? Would it be worth the cancellation of an 800 million dollar deal? Could Russian action over the missile sale and Israeli gas reserves indicate that they have come to terms with the Israeli point of view?

Prominent Americans like David Petraeus have been saying non-stop that Israel does not have the capability to destroy Iranian Nuclear capacities, and surely not Iran’s ambition to go nuclear. But if Israel can indeed delay the project while in the meantime having taken out of the picture one of Iran’s most important allies, then things might look very different from the office of Prime Minister Netanyahu. Everyone knows that Russia intends to play the ‘spoiler’ in the International arena. But this spoiler frequently has a price tag.

Originally published by the Gatestone Institute http://www.gatestoneinstitute.org

About the Author: Rotem Sella is a contributor to the Gatestone Institute.


If you don't see your comment after publishing it, refresh the page.

Our comments section is intended for meaningful responses and debates in a civilized manner. We ask that you respect the fact that we are a religious Jewish website and avoid inappropriate language at all cost.

If you promote any foreign religions, gods or messiahs, lies about Israel, anti-Semitism, or advocate violence (except against terrorists), your permission to comment may be revoked.

One Response to “Israeli Gas, Iranian Missles, and the Russian Price Tag”

  1. Whether or not Iran gets nukes, the Mullahs need a MAJOR attitude adjustment. Russia could do something worthwhile for a change. instead of always making trouble for the US. Islam is a major enemy of, well, everyone.
    So why not a united front to quell this growing menace, before the Islamic beast raises its ugly head any farther..

Comments are closed.

SocialTwist Tell-a-Friend

Current Top Story
United Nations Secretary-General Ban Ki-moon walks through a Hamas terror tunnel from Gaza to Israel.
IDF Checks for Terror Tunnel Threat in Northern Israel
Latest Indepth Stories
Noah and his Family; mixed media collage by Nathan Hilu. Courtesy Hebrew Union College Museum

Myth #1: It is easy to be a B’nai Noach. It is extraordinarily hard to be a B’nai Noach.

Sweden prefers to ignore its own problems and make trouble elsewhere.

The question of anti-Semitism in Europe today is truly tied to the issue of immigration.

256px-Israel-Palestine_flags.svg

Polls indicate that the Palestinians are much more against a two state solution than the Israelis.

Map of Syria-Turkish border area, pinpointing Kurdish border town of Kobani, just taken by ISIS terror forces Oct 7, 2014.

Turkey and Iran the 2 regional powers surrounding the ISIS conflict gain from a partial ISIS victory

Emigration from Israel is at an all-time low, far lower than immigration to Israel from Europe.

Leon Klinghoffer’s daughters: “‘Klinghoffer’ is justified as ‘a work of art’…This is an outrage.”

Do you seriously think that as you kidnap our children we should medically treat and help yours?

Sometimes collective action against the heinous acts of the majority is not enough. The world should not only support the blockade of Gaza; it must enforce the dismantling of Hamas.

The Arab Spring has challenged Jordan with the task of gradual reform with regard to its monarchy.

Israel offered Syria the entire Golan Heights, only to find that the Syrians were demanding MORE!

Israeli hasbara too can be described at best as pathetic, at worst non existent.

A ‘good news’ story from the Nepal avalanche disaster to warm your heart. Take out your Kleenex.

Journalists see the Israeli-Palestinian conflict as morality play: Israel=evil; Palestine=innocent

Warsaw Ghetto: At its height, the Nazis walled in some 500,000 Jews within the1.3 square mile area.

While police officers face dangers every day on the job, Jews also face danger in their daily lives.

Carter developed a fondness for Arafat believing “they were both ordained to be peacemakers by God”

More Articles from Rotem Sella
Russian President Vladimir Putin meets with Israeli Prime Minister Benjamin Netanyahu

Prominent Americans like David Petraeus have been saying non-stop that Israel does not have the capability to destroy Iranian Nuclear capacities, and surely not Iran’s ambition to go nuclear. But if Israel can indeed delay the project while in the meantime having taken out of the picture one of Iran’s most important allies, then things might look very different from the office of Prime Minister Netanyahu.

Hillary Clinton, Benjamin Netanyahu, and Ehud Barak

When four of out four newspapers in Israel deal with any single subject one can count on the fact that there is a deliberate effort by some personnel to set the headlines on fire.

Printed from: http://www.jewishpress.com/indepth/analysis/israeli-gas-iranian-missles-and-the-russian-price-tag/2012/08/19/

Scan this QR code to visit this page online: