The restoration of diplomatic ties between Turkey and Israel after a
six-year break creates fresh impetus for regional alliances in the
exploration, development and export of hydrocarbons in Eastern
Mediterranean.
Ankara and Tel Aviv signed a reconciliation deal on June 26 to
restore ties, ending years of tensions following a deadly 2010 raid on
an aid flotilla that sought to breach Israel’s security blockade on
Hamas-held Gaza. The deal includes $21 million in Israeli compensation
for Turkish victims of the Mavi Marmara incident.
The reconciliation deal preluded a decision by Turkish President
Tayyip Erdogan and Russian Vladimir Putin to restore relations, severed
by the 2015 Turkish downing of a Russian jet in Syria. “Turkey-Israel
negotiations were going on and America was supporting to establish these
relations again,” the former CEO of state-owned BOTAŞ Petroleum
Pipeline Corporation, Gokhan Yardim, told New Europe in Thessaloniki on
June 29. “But if we established the relations and made the agreements
with the Russians before the Israelis, I’m sure the Americans would be
sad,” he said on the sidelines of 9th Southeast Europe Energy
Dialogue, organised by IENE. “But the timing was very good and very
proper way this happened,” he added.
Yardim said that following the reconciliation agreement between
Ankara and Tel Aviv, many private Turkish energy companies are very
enthusiastic to get involved in Israel’s offshore Leviathan project.
“But it’s not easy to realise the Leviathan project because it needs
huge investment,” he said.
Yardim, who is currently the general manager of Turkerler Energy
Investment Holding in Turkey, argued that for the Leviathan field, the
most economical and easiest way is to bring part of the gas to Egypt and
liquefy it because there is a capacity there. But he also argued that
part of the gas could be exported via Turkey. “I’m convinced that the
reserves of Leviathan are enough to realise two projects,” Yardim said.
IENE Executive Director Costis Stambolis told New Europe in
Thessaloniki that some regional gas could be exported to Turkey. “I
don’t think there are any advanced plans to transport gas via Turkey to
Europe,” he said. “It doesn’t make economic sense. But it does make
sense for gas from the region to land in Turkey and for this gas to be
consumed to cover local, domestic needs. Because Turkey is trying to
diversify its gas supply, minimise gas coming from Russia,” he added.
Stambolis said the race for exporting gas from Eastern Mediterranean
is on. “We assume that new gas from the East Med will become available
in two-three-four years from Leviathan, maybe a little extra from Tamar
or neighbouring fields, from Aphrodite [Cyprus], and also from Zohr, if
there is an accommodation with Egypt concerning Egyptian consumption,”
he said.
“This gas, at this stage, we cannot say which direction is going to
go. There’re already some fairly advanced plans for this gas to be sold
to Egypt, either for domestic consumption or to LNG liquefaction
terminals,” he said.
At the same time, Stambolis reminded that Greece’s DEPA is developing
plans for the East-Med gas pipeline, which is supported by the European
Union, and would have a capacity of 8-10 billion cubic metres.
https://www.neweurope.eu/article/energy-hopes-us-drive-renewed-turkey-israel-relations/