The Energy Ministries of Israel and Cyprus are in talks “on issues of mutual interest and possible cooperation” after a report that they are close to signing a contract for Israel to provide Cyprus with natural gas via pipeline, marking Israel’s first gas sale to Europe, S&P Global reported on Monday.
In a statement provided to S&P Global Commodity Insights on October 14, the spokesperson for Israel’s ministry of energy and infrastructure stated that “As part of the strong relationship between Cyprus and Israel, the ministry is holding ongoing conversations with its Cypriot counterpart on issues of mutual interest and possible cooperation,” highlighting the strong relationship between Cyprus and Israel.
The gas will be piped in from the Karish and Tanin rigs in Israel to Cyprus, according to ynet.com and S&P Global, in a ten-year deal worth $1.5 billion.
It noted that Energean, which operates the Karish gas field offshore Israel, has submitted a request for an export licence to Cyprus and previously proposed a pipeline solution, a spokeswoman said Oct. 13, referring all questions about a contract to Israel’s energy ministry.
Gas from Karish is produced via the 8 Bcm/y capacity Energean Power FPSO for supply to the domestic Israeli market. Gas from Karish reaches land to the north closer to the border with Lebanon.
According to S&P Global, Israel has recently emerged as a leading gas exporter, with markets in Jordan and Egypt. May statistics released by the Israeli Energy Ministry showed that the country’s production reached a new peak of 24.7 Bcm in mid-2023.
Karish, which began production in October 2022, increased its output from 1.97 Bcm in the same period last year to 2.77 Bcm in the period from January to June.
The country’s other two gas fields include Leviathan, which began operations in 2019, and Tamar which started in 2013.
