Israel approves floating LNG terminal

Israel’s National Council has given approval for the development of a floating LNG terminal off the country’s Mediterranean coast, near the town of Hadera.

The terminal is expected to serve as a back-up for local natural gas supplies and is due to be completed by 2012. Israel has had significant problems with its natural gas supplies since the start of the Arab Spring revolts. The supply from Egypt in particular has been particularly troublesome and the pipeline bringing gas across the Sinai has been repeatedly sabotaged. This terminal should help meet any shortfalls in gas supply.

“The approval of the project is crucial and will guarantee gas supplies to the local economy until the Tamar offshore field comes online,” National Infrastructure Minister Uzi Landau said.

The Tamar offshore gas field has significant reserves and when it comes onstream Israel should have sufficient gas but in the short term with the country’s Mary B gas reservoir nearly depleted, shipping in LNG is the only solution.

Israel had been planning to build a permanent onshore LNG facility, which would have begun operation by 2015 but this plan has been shelved in favour of a floating LNG terminal linked to shore by subsea pipeline.

Houston-based Excelerate Energy are said to be in negotiations with Israel to supply LNG to the floating terminal.

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