Shell in talks to bring Leviathan gas to market via Egypt LNG
Royal Dutch Shell is considering options to bring gas from Noble Energy and Delek Drilling's giant Leviathan gas field offshore Israel and Cyprus to market.
Under discussion is a proposal wherein Shell would buy natural gas from Leviathan, combine it with gas production from the Aphrodite field (in which Shell owns a 35% stake) offshore Cyprus, and then send it to Shell's Idku LNG export terminal in Egypt.
Combining the production from the two fields could serve to improve the economics of the projects. Noble Energy and Delek Drilling have cited an estimated development cost for Leviathan of $3.75 B.
If the partners struck a deal with Shell, they would need to secure additional funds for development to increase Leviathan's output. Noble Energy remains in negotiations to supply natural gas to the Egyptian market.
If settled, the multi-partner, multi-field deal could go a long way toward fulfilling the Eastern Mediterranean region's aspirations to become a major gas-exporting hub.
Egypt was a net exporter of LNG until 2014, when dwindling gas production and power shortages resulting from political uprising forced the country to reserve the fuel for domestic use.
Cyprus is also eager to develop its gas sector. The concept of building floating LNG (FLNG) vessels to process the Aphrodite gas may be a viable option if regional politics prevent the construction of cross-border gas pipelines.
EMGC 2018. The production, infrastructure and economic issues surrounding the development of the Eastern Mediterranean's natural gas resources will be explored at Gulf Publishing Company's upcoming Eastern Mediterranean Gas Conference (EMGC).
EMGC 2018, the fifth iteration of the event, will be held 21–22 March 2018 in Nicosia, Cyprus and will feature insight and discussions by the top companies involved in Eastern Med energy operations.
The conference will also provide attendees with the latest information on the region's developing natural gas industry, and the ability to gain entry to regional markets and seek potential new business partners.
Please see the Events page for Hydrocarbon Processing and Gas Processing for more information.
- Gasum powers Equinor's platform supply vessel with bio-LNG
- ADNOC deploys pioneering AI-enabled process optimization technology
- Mexico Pacific announces long-term LNG SPA with POSCO International
- ONEOK to acquire Medallion and controlling interest in EnLink for $5.9 B
- Golar LNG signs EPC deal for $2.2-B MK II FLNG conversion project
- ONEOK to acquire Medallion and controlling interest in EnLink for $5.9 B
- Picarro launches handheld solution for natural gas leak investigation and closed-loop leak management
- Fincantieri LNG-powered Star Princess launched in Monfalcone
- Oman plans third LNG train, boosting domestic production to more than 15 MMtpy
- Brazil's fossil push undermines Lula's green ambitions
Comments