Israel looking to import Russian Gas

http://www.haaretzdaily.com/hasen/spages/513346.html

“For the first time since Israel began powering its electricity plants with natural gas, the government is checking the feasibility of buying from Russia.

The manager of the Infrastructures Ministry’s Gas Authority, Shuki Stern, presented figures to the treasury that even if British Gas, Tethys Sea and the Egyptians all supply gas to Israel, the nation will still start to run short by 2011. “

The gas would be transported via a pipeline passing through Turkey, and then going under the Mediterranean Sea.

From 2011 to 2017, demand is expected to run at 2 billion cubic meters a year, climbing to 5 billion cubic meters a year from 2018.

From the years 2011 to 2025, Israel is expected to run a gas shortfall of 50 to 60 billion cubic meters of gas, Stern warns. The result is that the Israel Electric Corporation and industry will burn up greatly more expensive and polluting fuels.
“For the first time since Israel began powering its electricity plants with natural gas, the government is checking the feasibility of buying from Russia.

The gas would be transported via a pipeline passing through Turkey, and then going under the Mediterranean Sea.

Previously, the Finance Ministry had rejected all propositions from Gazprom, arguing transportation would prove prohibitive.

Gazprom had proposed to sell an unlimited amount of gas via a pipeline passing by Antalia in southern Turkey, and ending at Haifa. Investment in the pipeline alone would cost more than a billion dollars. Gazprom offered to finance and handle its construction in exchange for a long-term contract.

The Finance Ministry’s change in attitude is based on growing fears of a gradually worsening shortfall in natural gas for Israel.

The manager of the Infrastructures Ministry’s Gas Authority, Shuki Stern, presented figures to the treasury that even if British Gas, Tethys Sea and the Egyptians all supply gas to Israel, the nation will still start to run short by 2011.

From 2011 to 2017, demand is expected to run at 2 billion cubic meters a year, climbing to 5 billion cubic meters a year from 2018.

From the years 2011 to 2025, Israel is expected to run a gas shortfall of 50 to 60 billion cubic meters of gas, Stern warns. The result is that the Israel Electric Corporation and industry will burn up greatly more expensive and polluting fuels.

Tethys Sea is expected to run out of gas to sell by 2018, after which Israel will have to rely on Egypt and the Palestinians, the Infrastructures report says.

What Israel needs is another supplier, the ministry has concluded, adding that the most appropriate seems to be Gazprom.

Last week, speaking at a conference, Stern called on the government to consider opening negotiations with Russia.

Eli Landau, the former chairman of the Israel Electric Corporation, has pointed out that a pipeline from Russia could also serve to supply Cyprus, Lebanon and Syria. “

http://www.haaretzdaily.com/hasen/spages/513346.html