Noble
Energy Inc.(NYSE:NBL) is preparing to lay an underground pipeline
from Block 12 to
Cyprus
, according to media reports on the
island. The pipeline is reportedly part of a venture to set up an LNG terminal
off
Cyprus
's southern coast that will enable the
liquefying gas for export to Europew and
Asia
. The pipeline would be 300 kilometers long and
the cost is expected to reach $2 billion.
The cost of the LNG terminal will be
about $8-10 billion. Experts and commentators in
Israel
believe that the economic
justification is border-line for an LNG infrastructure and export for the
amount of gas discovered so far in Cypriot waters. Therefore additional
quantities of gas are required from Israeli gas fields or future discoveries in
Cypriot waters.
Israel
is yet to announce if it will support
a partnership in a Cypriot LNG installation or prefer to set up its own
installation in Israeli waters. The decision is expected to be taken only after
publication of the recommendations of an inter-ministerial headed by Shaul
Tzemach on
Israel
's gas production sector. Publication
of the recommendations is expected at the end of this month after being
postponed for 30 days.
According to reports in the Cypriot
media, Nobel has leased the services of the research ship Odin Finder, which
flies the Italian flag. The ship is already mapping the seabed along the route
of the planned pipeline. Noble recently reported that the Aphrodite field in
Block 12 may contain 5.2 trillion cubic feet of natural gas. The field borders
Israel
's economic waters and part of the
strata could run over into the Pelagic license of Teddy Sagi and Beny Steinmetz.