• About us
  • Advertise
  • Contact
  • Nominate
  • Client’s Voice
  • Login
  • Register
📖 Magazine
The Global Economics
  • Home
  • Banking
  • Non Banking
  • Markets
  • Infrastructure
  • Lifestyle
  • FeatureNew
  • Awards
No Result
View All Result
  • Home
  • Banking
  • Non Banking
  • Markets
  • Infrastructure
  • Lifestyle
  • FeatureNew
  • Awards
No Result
View All Result
The Global Economics
No Result
View All Result
Home Top Stories

Chevron Using Israeli Gas Reserves For European Needs

The Global Economics by The Global Economics
July 28, 2023
in Top Stories, Energy
Reading Time: 4 mins read
0
Chevron Using Israeli Gas Reserves For European Needs

Chevron Using Israeli Gas Reserves For European Needs (Source : Shutterstock)

547
SHARES
3k
VIEWS
FacebookTwitterRedditWhatsAppLinkedInFacebook

Chevron ships massive volumes to Egypt for processing fuel into liquified natural gas (LNG) and then exports it to European ports

The American energy giant Chevron is utilising a 200-foot-tall steel structure 6 miles off the coastline of Israel to process natural gas dug out from wells at the seabed. Leviathan, the Israeli gas field, has enormous gas reserves, way more than what Israel can consume or the pipeline infrastructure can handle.

Since the beginning of the Russia-Ukraine conflict, gas has been used as a weapon for arm-twisting Europe. Russia blocked gas supplies in retaliation to the economic sanctions imposed upon it by NATO members. This proved to be a nightmare for European citizens during the winters. 

Chevron ships massive volumes to Egypt for processing fuel into liquified natural gas (LNG) and then exports it to European ports. It has rolled out plans for expanding the production facility and developing an enhanced pipeline network to boost exports to the neighbouring countries. As per the expectations of the plan, exports might more than double, to such an extent that it can fulfil the demands of smaller nations like the Netherlands, a major consumer of fuel that relied on Russian supplies. 

Leviathan is a giant which generated $2.5 billion in revenues the previous year. But, it was never optimally utilised to its full potential because of its tense location. Business relations between countries have recently been formed in this area that suffered due to wars. Hence, matters of increasing gas production and selling it into global markets had been a challenging task. 

Chevron has increased interest in this area and has developed commercial relations with neighbouring countries that also have a similar interest in this region. Chevron has obtained rights to gas deposits in Israel, Egypt, and Cyprus and is working towards a kind of trilateral collaboration to develop the region as one of the world’s last major petroleum hubs.

History

The California-based energy giant Chevron started pumping natural gas in Israel after acquiring a smaller American energy company, Noble Energy, for $4.1 billion three years ago. It holds a 40% operating stake in Levithan and 25% in Tamar, another Israeli gas field. It also has stakes in nearby areas like an unconstructed gas deposit in Cypriot waters and a chain of offshore blocks in Egyptian waters. 

Currently, Chevron is supplying most of the Israeli gas through pipelines to Egypt and Jordan. The further expansion plans will produce more gas which will be exported ahead, but the mode of transport has yet to be announced. 

Abdel Fattah el-Sisi, the Egyptian President, has plans to develop his country into a gas trading hub. Egypt will require huge volumes of gas to flow through its network of two LNG facilities located on the Mediterranean coast. The two facilities are partly owned by Shell and an Italian company, Eni. 

Chevron has plans to transport Israeli gas and, hopefully, Cypriot gases, too, from Egyptian terminals. They are also planning to install an LNG facility in Israeli waters. This will reduce Egyptian dependence and provide full autonomy to export gas at the global price. Jeff Ewing, Chevron’s managing director for the Eastern Mediterranean, said that this plan would give control to Chevron to decide where LNG will go after processing. 

Possibilities ahead

Chevron’s multibillion-dollar investment to expand its capacity in Israel is still doubtful. But, whatever happens, the certainty of the Eastern Mediterranean region transforming into an energy trading centre has risen. 

A couple of decades ago, Israel had no significant discovery of petroleum reserves, despite being located in the Middle East region. Now it has become an essential player in the global gas supply chain, and gas made has a lot of contribution to the Israeli economy, helping them move away from coal for electricity generation. 

Leviathan, besides gas, is contributing to the development of bilateral relations. Recently, an investment company based out of Abu Dhabi, Mubadala, has bought a stake in the Tamar gas field. An Emirati national oil company, Adnoc with BP, is in talks to purchase a 50% stake in a partner of Leviathan, NewMed Energy. 

Another interesting reconciliation of relations happened between Israel and Lebanon based on gas production. This deal will allow the exploration of petroleum reserves in Lebanese waters by overseas companies. This deal was initiated by Washington. 

The European Union made a deal with Israel and Egypt to import greater quantities of natural gas from their gas fields. On the other hand, they are heavily investing in cleaner energy sources, like solar and wind. Europe’s gas consumption decreased by 14% last year and is expected to fall further. 

Source: short URL
Tags: ADNOCBPChevronLNGNATORussia-Ukraine
The Global Economics

The Global Economics

The Global Economics Limited is a UK based financial publication and a bi-annual business magazine giving thoughful insights into the financial sectors on various industries across the world. Our highlight is the prestigious country specific Annual Global Economics awards program where the best performers in various financial sectors are identified worldwide and honoured.

Related Posts

Evergrande Chairman Detained as Chinese Property Crisis Worsens
Real Estate

Evergrande Chairman Detained as Chinese Property Crisis Worsens

by The Global Economics
September 28, 2023
Looming US Govt Shutdown & Bitter Political Divide Threatens Economy
Economy

Looming US Govt Shutdown & Bitter Political Divide Threatens Economy

by The Global Economics
September 27, 2023
Evergrande’s Debt Struggles Shake China’s Property Stocks
Real Estate

Evergrande’s Debt Struggles Shake China’s Property Stocks

by Riya Thomas
September 25, 2023
The US Entertainment Industry Strike Nears End as Writers and Studios Reach Deal
Lifestyle

The US Entertainment Industry Strike Nears End as Writers and Studios Reach Deal 

by The Global Economics
September 25, 2023
Indonesian Parliament Approves $216 Billion State Budget
Economy

Indonesian Parliament Approves $216 Billion State Budget

by Riya Thomas
September 21, 2023
Twitter Youtube LinkedIn Soundcloud
the global economics logo

The Global Economics Limited is a UK based financial publication and a quarterly business magazine giving thoughtful insights into the financial sectors on various industries across the world. Our highlight is the prestigious country specific Annual Global Economics awards program where the best performers in various financial sectors are identified worldwide and honoured.

DMCA.com Protection Status

  • Privacy
  • Legal
  • Terms of Use
  • Client’s Voice
  • Server Status

norton verified - the global economics

Latest Posts

Evergrande Chairman Detained as Chinese Property Crisis Worsens

Evergrande Chairman Detained as Chinese Property Crisis Worsens

September 28, 2023
Looming US Govt Shutdown & Bitter Political Divide Threatens Economy

Looming US Govt Shutdown & Bitter Political Divide Threatens Economy

September 27, 2023
Amazon to Invest $4 Billion in AI Startup Anthropic

Amazon to Invest $4 Billion in AI Startup Anthropic

September 26, 2023
Download The Global Economics PWA to your mobile or Desktop
PWA App Download
Download The Global Economics Android App to your mobile or Desktop
Android App
Download The Global Economics IOS App to your mobile or Desktop
IOS App

All Rights Reserved © 2020 | 🇬🇧 The Global Economics, Business Finance Publication - www.theglobaleconomics.uk 🌏

No Result
View All Result
  • About us
  • Awards
  • Magazine
  • Client’s Voice
  • Exclusive Coverage
  • Nominate
  • Login
  • Sign Up

All Rights Reserved © 2020 | 🇬🇧 The Global Economics, Business Finance Publication - www.theglobaleconomics.uk 🌏

Welcome Back!

Sign In with Facebook
Sign In with Linked In
OR

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Sign Up with Facebook
Sign Up with Linked In
OR

Fill the forms below to register

*By registering into our website, you agree to the Terms & Conditions and Privacy Policy.
All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Go to mobile version