The discovery of a “supegiant” gas field in Egyptian waters could be bad news for Cyprus and Israel while Greece push towards the privatization of its energy sector
The East Mediterranean energy play has been transformed overnight when the Italian energy company ENI announced the discover of a giant gas field off the coast of Egypt.
Read More: Italy’s Eni discovers huge gas field off Egyptian coast
Zohr, the so called newly discovered gas field could hold a potential of 30 trillion cubic feet of gas – the largest discovery in the region, thirty percent larger than the Israeli Leviathan field which held the title until today.
The discovery is great news for Egypt that could meet its energy needs for decades and provide economic and political boost to the nation but at the same time it threatens to end the energy dreams of neighbors like Israel and Cyprus.
Israel
Israel and Egypt signed a deal last year under which Israel would export gas from the huge Leviathan field to Egypt. Following the discovery, shares in Israeli energy firms tanked while politicians were scrambling why they had not been exploited faster.
The U.S. firm Noble Energy that is developing the Leviathan field insists that is still well-positioned to meet the region’s energy needs despite the rival discovery.
Cyprus
The discovery announcement has also most likeley finish the plans of Cyprus to sell its offshore gas to Egypt.
Government of Cyprus tried to pass a positive message about ENI’s discovery when Cyprus energy minister said that since the Zohr find is in close proximity to three of Cyprus’ licensed offshore blocks (10, 11 and 12), that could revive hopes for more gas discoveries on the Cypriot side.
He said also that he spoke with his Egyptian counterpart and that plans to transport Cypriot gas via a subsea pipeline to Egypt remained on track.
On the other hand, gas experts believe that the plans Cyprus has to export gas to Egypt are now finished and two options remain. A possible pipeline to Europe through Turkey or combine the resources of Israel’s Leviathan with Cyprus’ Aphrodite field for export to Europe.
Greece
The news coming from Athens regarding gas industry says that Athens will likely move to approve the deal with Azerbaijan’s state-owned oil company SOCAR to purchase a substantial stake of the country’s gas grid company.
The deal would give over 60 percent of the company to SOCAR for about $457 million, according to the country’s privatization agency.
The two parties were under discussion since 2013 and now the move comes as Greece continues to pursue a possible energy role in the region, either as a production center or transport hub.
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