Options for exporting Israeli gas are constrained
Friday, February 25, 2022
Significance
The decision, which critics allege is geopolitically motivated, will hinder the willingness of US financial institutions to provide financial backing for the USD6bn project to deliver gas from new fields in the Eastern Mediterranean to Europe.
Impacts
- Projects to link electricity grids in the region are likely to receive a boost to address energy supply issues.
- Renewable energy projects in the region are also likely to receive added attention to address energy transition needs.
- The Israeli natural gas sector will become increasingly concerned about the risk of stranded natural gas assets.
- Egypt will continue to pursue ambitions to become the region’s natural gas hub.
- Turkey will continue to pursue claims to gas resources offshore Cyprus and position itself as the entry point for Europe.
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