• 4 minutes Nord Stream 2 Halt Possible Over Navalny Poisoning
  • 8 minutes America Could Go Fully Electric Right Now
  • 11 minutes JP Morgan says investors should prepare for rising odds of Trump win
  • 19 hours Permian in for Prosperous and Bright Future
  • 3 hours Daniel Yergin Book is a Reality Check on Energy
  • 5 hours Gepthermal fracking: how to confuse a greenie
  • 11 hours YPF to redeploy rigs in Vaca Muerta on export potential
  • 31 mins US after 4 more years of Trump?
  • 12 hours Top HHS official takes leave of absence after Facebook rant about CDC conspiracies
  • 4 hours The Perfect Solution To Remove Conflict Problems In The South China East Asia Sea
  • 2 days US Oil Refinery Fexibility
  • 2 days China Must Prepare for War Says State Media
  • 2 days Interconnection queues across the US are loaded with gigawatts of solar, wind and storage
  • 20 hours Surviving without coal is a challenge!!
  • 2 days Portuguese government confirms world record solar price of $0.01316/kWh
  • 2 days Trump's Drilling Ban Bombshell Rocks Oil Industry

RUSSIA-ISRAEL: New Oil & Gas Geopolitics in the Mediterranean

Bottom Line: Russia’s announcement this week that a Gazprom subsidiary had signed a deal for Israel’s offshore Tamar gas field will exponentially strengthen Gazprom’s prowess in the massive Asian LNG market. (Israel has yet to approve the deal, but it will—it’s needs the money for infrastructure and it needs the deal for a new geopolitical landscape).

Analysis: What Russia has right now is a single LNG plant in its Far East (Sakhalin-2), supplying LNG to South Korea and India (though it plans to build another plant in Vladivostok). With the Israel deal, it will gain direct export access to Japan, South Korea, China and India.

The deal Russia signed on Tuesday will see Gazprom provide financial support for the development of the Tamar Floating LNG Project, which should begin construction in 2017. The deal also gives Gazprom exclusive rights to purchase and export Tamar LNG. The Tamar gas field is the second major gas field in Israel (after Leviathan), both off the coast of the port city of Haifa. Tamar has an estimated 270 billion cubic meters of gas. The floating LNG project would liquefy gas from Tamar at a floating liquefaction vessel with a capacity of 3 million tons/year.

This is a major step for Russia in its attempt to diversify from the European market, and it is also significant that Tamar is a US-Israeli joint venture for the most part. Russia isn’t courting Israel to this extent without the US blessing—and…




Oilprice - The No. 1 Source for Oil & Energy News