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April 2, 2015 / 13 Nisan, 5775
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Posts Tagged ‘Natural gas’

Tamar Group To Sell Gas To Egypt Through Same Old Pipeline Built For Gas Exports To Israel

Thursday, March 19th, 2015

Published by Jewish Business News

A consortium of private, industrial, and commercial Egyptian companies will buy at least $1.2 billion of natural gas from Israel’s offshore Tamar field, through the very same pipeline Egypt had used to send gas to Israel.

On Wednesday, the Tamar partners announced a seven-year deal with Dolphinus Holdings, with a minimum 5 billion cubic meters of natural gas to be sold in the first three years.

But Reuters cites an energy source in Israel who said the deal is likely to be more than three times higher, as Egypt has been facing an energy crisis.

The gas will run through the underwater pipeline constructed almost 10 ago by East Mediterranean Gas (EMG), which executed the Egyptian-Israeli natural gas deal killed by the President Morsi government, and attacks on the pipeline by Salafi terrorists in the Sinai.

A lot of water ran through the River Nile since.

Texas-based Noble Energy is the field’s operator.

Chairman of Delek Drilling Yossi Abu, said the deal highlights Israel role as “an energy anchor for countries in the region” and that the deal will “radically change Israel’s geopolitical status.”

The Dolphinus deal is subject to regulatory and other approvals in Israel, Egypt and from the East Mediterranean Gas Company (EMG).

Islamists Help Israeli Exports and Blow Up Egyptian Gas Pipeline

Tuesday, December 23rd, 2014

Islamists blew up Egypt’s natural gas pipeline in northern Sinai Tuesday morning.

All roads to the area have been closed.

The “Champions of Israel,” known in Arabic as Ansar Beit al-Maqdis, previous has claimed responsibility for numerous bombings and attacks on Egyptian forces and has pledged its allegiance to the ISIS.

Every time the terrorists blow up the Egyptian gas pipeline, it benefits Israel, a more dependable source for natural gas that is being pumped from off-short energy fields discovered in recent years.

However, Israeli authorities still can’t make up their minds over an agreement what Israel’s Delek Group and its partner Noble Energy, based in the United States, can buy the Leviathan off-short energy field.

Anti-trust officials said Tuesday morning they told representatives of Delek and Noble they are ”considering” whether the purchase establishes them as an illegal cartel.

Israel to Export Gas to Egypt

Sunday, October 19th, 2014

The consortium that owns the huge off-shore Tamar natural gas field has signed a seven-year memorandum of understanding with the Egyptian Dolphinus Holdings to export of up to 2.5 billion cubic meters of gas to private Egyptian customers, Globes reported.

The deal is in addition to other sales by the owners of the Tamar and the Leviathan energy fields that have turned Israel into an energy exporter. Previously, Israel was dependent on Egypt for natural gas and had signed a long-term agreement with the regime of Hosni Mubarak. During and after the revolution that ended with his ouster and subsequent arrest and conviction for corruption.

Terrorists in the Sinai routinely blew up the pipeline through which gas flowed to Israel and Jordan.

Delek Drilling chairman and Avner CEO Gideon Tadmor, whose companies are part of the consortium, said, “The Tamar and Leviathan partnerships have so far signed a series of agreements designed to enable the supply of natural gas to the Palestinian Authority, to Jordan, and for export as liquid natural gas via the existing installations in Egypt. The MOU with Dolphinus is a further, important link in the series of agreements, allowing the supply of gas to the Egyptian domestic market as well. I have no doubt that these agreements will lead to a strengthening of Israel’s relations with its neighbors.”

The sale price of the gas will be dependent on the price of crude oil on the world market.

The Dolphinus Holding company reportedly represents large non-government industrial and commercial gas consumers.

The Leviathan consortium last month signed an agreement worth $15 billion with Jordan to export $45 billion worth of natural gas over a 15-year period.

Jordan has turned to Israel for gas because of the interruptions in the flow from Egypt.

In February, Tamar partners also announced an agreement to sell natural gas to Jordan through a new pipeline.

The exports of natural gas have played a major role in the increase of the value of the shekel until the shekel-dollar rate touched below 3.40 in the summer. It since has rebounded to nearly 3.75 shekels to the dollar because of reports of slower than expected growth on Israel, a cut in the interest rate and anticipation that the U.S. Federal Reserve Bank will raise the prime rate by early next year.

 

Shekel Dollar Rates Breaks Year High at 3.64

Tuesday, September 16th, 2014

The shekel-dollar rate continued its non-stop climb Monday and reached beyond 3.64 shekels to the dollar but is near a short-term resistance level of 3.66

The rate two months ago was 3.40, and analysts were predicting a further drop, but The Jewish Press reported here before the recent rise that the situation of everyone being of the same opinion was a sure sign that a reversal to the upside was in sight.

However, our previous report saw resistance around 3.62, a level that easily was broke but still is only 2 cents from the next level of 3.66

The dollar has risen against almost all foreign currencies this summer after years of being in the doldrums. The Federal Reserve Bank has given clear signals that the  near-zero prime interest rate will rise next year, which will give investors a higher return for putting dollars in the bank.

The shekel had been strong, translated into a low shekel-dollar rate, for several years until this summer. The Israeli currency was strengthened in part by the prospect of Israel becoming an exporter of natural gas, but a slowdown in the economy, hastened by the war in Gaza, regional turmoil, and the tough government choice of having to raise taxes or the debt ceiling have combined with the strong dollar to send the shekel-dollar rate north.

This is good news for anyone with money in shekels or who gets paid in dollars because the conversion rate back into shekels is becoming higher each day.

That is equally true for Israeli-based international companies, whose earnings have taken a hit in recent years because of a decline in the shekel-dollar rate.

A cheaper shekel helps increase exports and tourism because more dollars buy more shekels.

On the downside, the higher shekel-dollar rate reflects pessimism over the local economy, which until last year was one of the strongest and most stable in the world, surviving quite well even the global bust in 2008.

“The economy is slowing down sharply, and when you combine this with the fact that Israel is part of the global picture, it’s likely that the shekel will continue to weaken,” Robert Carmeli, overseas funds manager at Migdal Capital Markets to told Globes business newspaper.

He and others are predicting that the shekel-dollar rate will approach 3.80 by the end of the year.

No Turkish Delight for Israeli Energy

Tuesday, September 9th, 2014

Turkey is not going to be signing any deals for Israeli natural gas exports any time soon – at least, according to a statement by Turkish Energy Minister Taner Yildiz.

The Turkish energy mogul said Tuesday that Ankara was unlikely to approve construction of a gas pipeline from Israel to Turkey. Yildiz blamed the sour relations with Israel on the Jewish State’s counter terror Operation Protective Edge this summer against Hamas and allied terrorists. The operation was carried out to silence the incessant, deadly rocket fire being aimed at Israeli civilian families in the southern part of the country.

Jordan, however, has just concluded a deal to import natural gas from Israel over the next 15 years, at a cost of some $15 billion.

The massive Leviathan natural gas field discovered beneath the waters of the Mediterranean, off the northern coast of Israel, turned the Jewish State into a regional energy exporter practically overnight. Talks between the Leviathan consortium and Turkish counterparts subsequently had been taking place quietly over the past year, but politics sabotaged any deals that might otherwise have come to fruition.

“For energy projects to proceed, the human tragedy in Gaza will have to be stopped and Israel will have to instate a permanent peace there with all elements,” Yildiz told reporters in Ankara. “It is out of question to proceed on any energy project unless a permanent peace is established, with contribution from all sides and with necessary conditions. A human tragedy unfolded (in Gaza); it is all too easily forgotten.”

Relations between Turkey and Israel have been limping since 2006, when the number of attacks from Gaza escalated sharply. Israel was forced at the time into launching a maritime and overland blockade of Gaza when Hamas and allied terrorists carried out a cross-border attack and abducting an IDF soldier. In that attack, two other soldiers were killed and a third was critically wounded.

Turkey’s President Recep Tayyip Erdogan and his ruling AKP party have long been strong supporters of the Muslim Brotherhood — which spawned the Hamas terrorist organization that rules Gaza. Likewise, Erdogan and Turkey continue to defend actions by Hamas, regardless of the consequences.

Israel is Energy Exporter in $15b Gas Deal to Jordan

Wednesday, September 3rd, 2014

Israel became an energy producer for the first time today with the closure of a deal to export natural gas to Jordan from the mammoth Leviathan gas field.

Leviathan will become Jordan’s main supplier of natural gas in the coming years. Months of discussions in the Israeli government eventually ended earlier in the year with a decision that the country would be allowed to export 40 percent of its offshore natural gas reserves.

Noble Energy Inc., Delek Group Ltd, Avner Oil and Gas LP and Delek Drilling Limited Partnership and Ratio Oil Exploration were expected to sign a $15b Memorandum of Understanding today (Sept. 3, 2014) to export natural gas for the next 15 years to Jordan.

Israeli Minister of Natural Infrastructures, Energy and Water Resources Silvan Shalom, and the U.S. State Department were both involved in the deal.

The Leviathan gas field is a large natural gas field located in the eastern Mediterranean Sea off Israel’s coastline, about 47 kilometers (29 miles) southwest of the Tamar gas field. It is located approximately 130 kilometers (81 miles) west of Haifa, in waters about 1,500 meters (4,900 feet) deep.

Leviathan Natural Gas Field 16% Larger Than Expected

Wednesday, July 16th, 2014

Israel has received good news from the energy sector despite the missile fire aimed at its civilians by Gaza terrorists. The Leviathan gas field was found to be even bigger than previously expected.

The estimated size of the natural gas reserve was raised Sunday by 16 percent after an updated analysis by consultant Netherland Sewald & Associates (NSAI) estimated the field to hold 21.93 trillion cubic feet (620 billion cubic meters, or bcm.)

NSAI raised its estimate based on expansion of Leviathan’s database, which included 3D seismic surveys and a laboratory analysis.

Along with Leviathan, the Tamar field holds 303 bcm and began production a year ago. Two other, smaller sites hold an additional 58 bcm.

The Leviathan field is operated by Texas-based Noble Energy, which holds 39.66 percent of the rights to the reserve. Israel’s Avner Oil and Delek Drilling, both subsidiaries of the Delek Group – hold a combined 45.34 percent stake. Ratio Oil holds the remaining 15 percent of the shares.

Printed from: http://www.jewishpress.com/news/breaking-news/leviathan-natural-gas-field-16-larger-than-expected/2014/07/16/

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