Turkey and Israel about to change the Cyprus gas game?(
CM).By Stefanos Evripidou (
other) Apart from removing Turkish objections to Israeli participation in NATO exercises, the prospect of reconciliation has also “
removed a big obstacle to collaboration over the development of strategic energy resources in the eastern Mediterranean”, reported the Financial Times (FT) yesterday.
The London-based paper noted that improved ties between Turkey and Israel could also affect Cyprus should greater energy cooperation result in Nicosia getting sidelined. A Turkish official told FT that reconciliation also made a possible gas pipeline from Israel to Turkey a “much more viable” idea.
The latest opinion of an advisory committee of the Israeli government is that if gas should be exported, it will have to go through Israel first. A Cypriot diplomatic source told the Cyprus Mail that reports suggest Turkey is seriously considering a pipeline between Israel and Ceyhan. “This could very well be a game-changer. There is much more (to the apology) than meets the eye,” he said.
Matthew Bryza, a former US ambassador to Azerbaijan, was quoted by FT saying that without Israel to provide economies of scale, “in the short term the Cypriots lose their ability to do a pipeline or an LNG (liquefied natural gas) option”, adding that in the longer run a Cypriot pipeline to Turkey would make most commercial sense.
According to FT, Noble Energy and Delek Energy, who are the main investors in Israel’s large offshore natural gas fields- as well as partners in Cyprus’ Block 12- have in recent weeks “sounded out possible customers in energy-hungry Turkey”. The paper noted that until now, the private sector was eager to proceed with a possible pipeline between Israel and Turkey but that the political rift between the two governments did not allow progress to be made. (MORE)