Tamar FLNG Terminal
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Tamar FLNG Terminal was a proposed LNG export terminal in Tamar, Israel. There have been no development updates in over four years and the project is presumed to be cancelled.
Location
Project details
- Owner: Isramco Negev 2 (28.75%); Chevron (25%); NewMed Energy (formerly Delek Drilling) (22%); Tamar Petroleum (16.75%); Dor Gas Exploration (4%); Everest Infrastructures LP (3.5%)[1]
- Parent company: Isramco Negev 2 (28.75%); Chevron (25%); NewMed Energy (formerly Delek Drilling) (22%); Tamar Petroleum (16.75%); Dor Gas Exploration (4%); Everest Infrastructures LP (3.5%)[1]
- Location: Tamar, Eastern, Israel
- Coordinates: 33.078333, 33.951389 (approximate)
- Capacity: 3 mtpa, 0.43 bcfd
- Status: Cancelled
- Type: Export
- Start year:
- Cost: €3–4 billion[2]
Background
Tamar FLNG Terminal was a proposed LNG export terminal in Tamar, Israel located about 90 km off Israel’s coast.[3]
The floating terminal would have processed gas from the Tamar gas field, which had an estimated 9.7 trillion cubic feet of natural gas in 2013[4] and in 2017 had an estimated 318 billion cubic meters of gas.[5]
There have been no development updates in over four years and the project is presumed to be cancelled. The project appears to have never been implemented, among other things, because the then Minister of National Infrastructure, Energy, and Water Resources didn't approve it.[6]
Israel's gas use and reserves
As of 2017 natural gas provided 70% of Israel’s electric power. Most of it was imported, particularly from Egypt, through the Arish-Ashkelon pipeline.[5]
Israel's demand for imported LNG began in 2011 following the disruption of Egyptian supplied gas and the depletion of the offshore Yam Tethys reservoir.[7]
The country, however, began moving to develop its domestic reserves after 2011. Israel’s known gas reserves were 30 trillion cubic feet. The United States Geological Survey (USGS) in 2013 estimated at least twice as much could be had offshore that count meet Israel’s energy needs for the next 30 to 50 years.[8] Reuters reported in 2013 that the USGS predicts the greater eastern Mediterranean’s Levant basin could hold up to 122 trillion cubic feet of recoverable gas. This would make it one of the world’s largest gas deposits.[4]
In 2010 Israel had declared it would use its natural gas reserves to power cars and trucks, but according to a 2017 study by the Samuel Neaman Institute for National Policy, the country had done little to meet this goal.[5]
As of 2014, Israel produced over 7.5 billion cubic meters (bcm) of natural gas a year, and only exported to Palestinian territories.[9]
In 2009 and 2010, two major offshore gas deposits, the Tamar and Leviathan fields, were discovered.[1] However, although reserves amounting to almost 900 billion cubic meters were found, the exploitation of these resources was delayed by regulatory uncertainty until around 2017, when a final investment decision for the development of the initial phase of the development plan for the Leviathan field was reached.[1]
In August 2017 Haaretz reported that Egypt could open up its markets to Israel gas. In early August 2017 Egyptian President Abdel Fattah al-Sissi signed legislation forming a gas regulatory authority and permitting private companies to import gas.[10] In 2020, Israel began importing gas to Egypt through the Arish-Ashkelon pipeline.[11]
Even though Israel was historically almost entirely dependent on oil and gas imports, the discoveries of the Tamar and Leviathan fields have allowed the country to become more independent by shifting its economy to rely on its domestic gas reserves.[11] In 2023, the estimated gas reserves for Israel were 1,087 billion cubic meters. This has allowed Israel to become an energy exporter, primarily to countries like Jordan, Lebanon, and Egypt.[12][1][11]
War in Ukraine and European energy crisis
During 2022 and 2023, European energy markets shifted as as result of the war in Ukraine, creating opportunities for countries in the Middle East to develop gas and oil export projects to meet growing European demands for energy.[13] Although Israel's deposits are large for the country, they're small compared to European demand; therefore, because of the relatively small quantities of gas available in Israel, the difficult topography of the Mediterranean, and the geopolitical complexities of the maritime borders in the region, exporting gas from Israel to Europe has historically proved to be too expensive and inefficient.[13]
However, with rising demands from Europe, Israel and neighboring countries like Cyprus have been looking at LNG as an alternative to export gas to Europe while ridding themselves of the geopolitical complexities of constructing pipelines.[13] One of the cheapest and most efficient way for Israel to export gas to Europe is through existing terminals in Egypt (Idku and Damietta).[13] However, other projects like a land-based LNG export terminal in Cyprus, a proposed LNG export terminal in Israel, and the EastMed Pipeline are additional alternatives to export gas to Europe.[11][13]
Middle East and LNG imports
Israel is not the only country rich with gas reserves in the Middle East to import gas. Countries in one the most gas rich regions import LNG by tanker. They include Mina Al-Ahmadi LNG Terminal in Kuwait in 2009, Jebel Ali FLNG Terminal in Dubai in 2010, Hadera LNG Terminal in Israel in 2013, Jordan through Aqaba Jordan LNG Terminal in 2015, Ruwais LNG Terminal in Abu Dhabi in 2016. The city of Sharjah in the United Arab Emirates plan to import LNG in 2018. Bahrain plans to import LNG through its Bahrain Hidd FLNG Terminal in 2019. It was reported in 2017 that even Saudi Arabia is considering LNG imports.[14]
Articles and resources
References
- ↑ 1.0 1.1 1.2 1.3 1.4 Stuart Elliot, Partners in Israel's Tamar gas field reach new marketing settlement S&P Global, February 1, 2021
- ↑ "Gazprom Plans to Use Massive Floating LNG Facility Offshore Israel". gCaptain. 2013-03-01. Retrieved 2021-12-22.
- ↑ Tamar FLNG Terminal, A Barrel Full, accessed April 2017
- ↑ 4.0 4.1 Reuters Staff, "Gazprom banks on floating terminal for Israeli LNG," Reuters, February 27, 2013.
- ↑ 5.0 5.1 5.2 Oren Dori
read more: https://www.haaretz.com/.premium-1.804672, [ https://www.haaretz.com/.premium-1.804672 "Israeli Government Failing to Encourage Natural Gas Use in Transport Sector,"] Haaretz, August 2, 2017. Cite error: Invalid
<ref>tag; name "Oren" defined multiple times with different content - ↑ "Russia wants share in Israeli gas - Globes". Retrieved 2023-07-11.
- ↑ Hedy Cohen, "What does Israel Electric Corp actually pay for gas?," Globes, April 10, 2016.
- ↑ Martin Fletcher, "Israel’s Big Gusher," Slate, February 26, 2014.
- ↑ "Natural gas - production," CIA The World Factbook, accessed Oct 2017
- ↑ Eran Azran, "Egypt Clears the Way for Imports of Israeli Natural Gas," Haaretz, August 9, 2017.
- ↑ 11.0 11.1 11.2 11.3 "Oil & Natural Gas in Israel". www.jewishvirtuallibrary.org. Retrieved 2023-07-11.
- ↑ Oren Dori. "Israeli government failing to encourage natural gas use in transport sector". Haaretz.com. Retrieved 2023-07-11.
- ↑ 13.0 13.1 13.2 13.3 13.4 Elai Rettig (2023-03-12). "Israel's Energy Market and the War in Ukraine". Begin-Sadat Center for Strategic Studies. Retrieved 2023-07-11.
- ↑ Robin M. Mills, "The great gasification wave has passed," LiveMint, August 17, 2017.
