Weekly HEG Global Energy Digest
The Israel- Europe pipeline – a strategic umbilical cord
After two years in intense negotiations, shadowed by on-off parallel talks with Turkey, Israel has agreed with European nations to supply the European Union with its future natural gas needs. The project will turn Israel into a significant fuel-exporting nation.
It is expected that the official signing will take place at a very public event some time in February 2019.
It will take a year to put the financing in place. Then construction will begin on the longest and deepest underwater fuel pipeline in the world. Some 2,100 kilometers in length and lying three kilometers under the Mediterranean Sea. The $7 billion project will take five years to complete but could be in place and ready to pump even sooner.
It has been agreed that the financing will be operated through IGI Poseidon, a subsidiary of the French company, Edison, which was involved with the engineering feasibility studies and tests for this challenging project.
The project will be known as the East Med Pipeline Project. Natural gas will flow from Israel’s Leviathan offshore gas reservoir via Cyprus, Crete and Greece to reach its terminal at Otranto on the southeast heel of Italy, 100 kilometers south of Brindisi. This multinational pipeline will supply Europe with 125 billion cubic meters of natural gas annually by 2030.
Article Source: https://www.energymarketprice.com/energy-news/the-israel-europe-pipeline–a-strategic-umbilical-cord
Trafigura boosts LNG volumes by 22 percent
Trafigura, one of the world’s largest commodities trading firms, said its LNG volumes rose 22 percent in the 2018 financial year, driven by a surge in demand in Asia.
The Geneva-based independent company traded 9.85 million tonnes in the financial year that ended September 30, as compared to 8.1 million tonnes a year ago, according to Trafigura’s annual report.
This figure was boosted by sales to China and South Korea, with the Asian share of Trafigura’s LNG business jumping to 30 percent, it said.
Looking forward, Trafigura expects LNG demand to continue its upward trajectory over the next year to accommodate the new production from US, Australia and Russia coming online.
Trafigura added it is “well positioned” to supply the market, not least by virtue of a series of multi-year offtake agreements signed with LNG producers in 2018.
“In particular, the first cargo under our 15-year purchase agreement with Cheniere Energy is due to ship in January, marking the start of a contract amounting to one million metric tonnes per annum,” the trader said.
Article Source: https://www.energymarketprice.com/energy-news/trafigura-boosts-lng-volumes-by-22-percent