ABSTRACT
Natural gas discoveries, a turning point in Israel’s energy status, have ameliorated the nations’ supply side weaknesses and made it a potential gas exporter. For policymakers in Israel, gas is an instrument of foreign policy that can foster cooperation with near and proximate neighbours. Israeli gas field developers are preparing to export gas in two possible ways. First, export through subsea pipelines to Jordan, Egypt, Turkey, and European shores. Second, Israel is vying to use Egypt’s two liquefaction plants on the Mediterranean coast for an outlet for its gas as LNG. The issue of gas export raises the prospect of linking up resources and infrastructures of other Mediterranean players as well as highlights the difficulties posed by regional political and territorial disputes. In the near future, Israel would be unable to export gas to Turkey due to political tensions and the persistence of the Turkey-Cyprus conflict. Moreover, while hectic diplomacy between Israel, Cyrus, Greece, and Italy around the idea of a trans-Mediterranean pipeline from Israeli fields to European shores raises hope for Israeli gas, questions regarding the economic viability of such as an enormous project over a longue durée, have already led to several misgivings. Therefore, Israel’s export choices are limited in the near future, and Egypt emerges as the only real option for monetisation of Israel’s gas, besides the local market.
