Conference Presentation, Panel, Fireside Chat
Redefining the Middle East: A Game-Changing Energy Alternative from the Eastern Mediterranean
- The Eastern Mediterranean is expected to mature over the next 40 to 50 years, with reserves estimated between 3.2 trillion cubic meters and 122 trillion cubic feet, potentially reducing reliance on drying North Sea supplies by 2020 and creating a geopolitical shift comparable to Europe's post-WWII coal and steel cooperation.
- Infrastructure development plans include a potential 2015 pipeline to Turkey, sub-sea routes to neighbors like Egypt, Jordan, and Cyprus, and LNG exports, with the Leviathan project utilizing an FPSO and Tamar gas reducing global CO2 by approximately 195 million metric tons.
- Economic projections anticipate a peak daily spending rate of five to six million dollars for the Leviathan project, a $1.2 billion transaction with the Palestinian Electrical Corporation, and an Israeli sovereign wealth fund reaching 5% of GDP within 15 years, potentially transforming Israel into a creditor nation.
- Energy security improvements are expected to reduce power blackouts and fuel shortages, particularly in Jordan where electricity availability previously averaged eight hours daily, while cheaper gas-powered desalination aims to create excess water production for export.
- Market dynamics suggest new regional gas could compete with Russian supplies, offering a production cost of $14 per unit against a historical Turkish purchase price of $14.5, though political instability in Turkey poses investment risks and resolution of political issues is cited as necessary for regional stability.
- Operational strategies for the Leviathan project involve retaining specific gas reserves to ensure investor stability while expanding local content and technology transfer, with hopes to diversify risks through the inclusion of additional operators like Woodside.