NewMed Energy works to bring Israeli gas to Europe
Israel's NewMed Energy has reached a memorandum of understanding with German energy group Uniper on bringing Israeli gas to Germany via Egypt, the companies said on November 9.
NewMed said the two companies would work on bringing the gas to Germany in the immediate term by utilising existing infrastructure that links large gas fields off Israel to LNG export plants in Egypt. They will also look at delivering gas from Israel's giant offshore Leviathan field to Uniper, through an infrastructure expansion. This extra gas could be liquefied either in Egypt or at a newbuild export facility in Israel.
Germany is poised to become an LNG importer for the first time towards the end of this year, having leased two floating storage and regasification units (FSRUs), as the country scrambles to offset the loss of Russian gas supply as a result of Nord Stream 1's closure and subsequent damage. Two more FSRUs will arrive later, and a floating LNG terminal is due to be chartered for the 2023/24 winter.
“For the foreseeable future, natural gas will be the most significant energy source in the world," Yossi Abu, CEO of NewMed Energy said. "NewMed Energy is continuing to promote its international activity. Leviathan is an energy anchor in the Middle East, supplying energy to Israel and other countries in the region, while also being able to help in the energy crisis in Europe.”
Niek den Hollander, CCO of Uniper, added: “This collaboration with NewMed Energy fits our strategy of diversifying our gas supply sources and paving the way to a decarbonized world. Sourcing natural gas from offshore Israel has the potential to increase security of supply for Germany.”