Turcas Petrol proposes Leviathan pipeline

Turkish pipeline operator, Turcas Petrol, has proposed to develop and construct a 470 km pipeline to connect Turkey with Israel’s Leviathan natural gas platform. The announcement comes after Israel’s discovery of considerable amounts of natural gas in the eastern Mediterranean.

The Director of Turcas, Matthew Bryza, announced the offer worth US$ 2.5 billion. He described the pipeline as an attractive venture, despite the political risks arising from the strained relations between Israel and Turkey. He stated “Our company and other companies are prepared to take the risk on themselves if the venture is hurt or even torpedoed by political developments.”

First detailed plan of the pipeline venture

During the international energy conference, held in Cyprus on Thursday, Bryza said that the pipeline would have the capacity to transfer 16 billion m3/yr from Leviathan to the southern ports of Cekisan or Mersin. Most of the Leviathan gas would be used on the Turkish market, which needs new sources of supply. The remaining gas would be sold in Europe, mainly Greece.

This is the fist public statement by a Turkish company about the proposed Israel natural gas export venture to Turkey. According to Israel’s financial daily newspaper, Globes, Turkey’s Zorlu Group has also been in talks with Israel. Zorlu apparently contacted companies who had shares in Israel’s natural gas region Leviathan, and made offers for pipeline development and construction.

In June, Israel’s government decided to limit natural gas exports to 40% of the country’s newly discovered offshore reserves. Negotiations, therefore, are subject to the next High Court Hearing of the petition in October.

Edited from various sources by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/16092013/turcas_petrol_proposes_leviathan_pipeline/