ABSTRACT
This chapter argues that the form of energy most relevant for developments around the Eastern Mediterranean is natural gas. The gas cost base of Eastern Mediterranean fields is about $4 to $5 per MMBtu, making it difficult for Eastern Mediterranean liquefied natural gas to enter the European market even when setting aside additional costs and challenges related to pipeline transport, liquefaction, transportation, and regasification. Russia's regional involvement has changed the Eastern Mediterranean's regional reality. Russian action in Syria is of particular relevance to Turkey, whose geographic position makes it a strong option for transporting gas supplies from the Middle East, Russia, and Asia to Europe. Ultimately, Eastern Mediterranean gas dynamics are changing rapidly, and the era of plenty, along with peaking global energy demand, means that low prices are to stay. Gas producers in captive domestic markets, such as Egypt and Israel, will fare better as prices are less dependent on global factors.
