Natural Gas Discoveries in the Eastern Mediterranean (CRS Report for Congress)
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| Release Date |
Aug. 15, 2016 |
| Report Number |
R44591 |
| Report Type |
Report |
| Authors |
Ratner, Michael |
| Source Agency |
Congressional Research Service |
Summary:
Since 2009, a series of large natural gas discoveries in the Levant Basin have altered the dynamics of the Eastern Mediterranean region. Israel's discovery of the Tamar Field and subsequent discovery of the larger Leviathan Field created the potential for the country to become a regional player in the natural gas market. Since the initial Israeli discoveries, Cyprus and Egypt have also found new gas deposits in the Mediterranean. The Aphrodite Field was discovered by U.S. firm Noble Energy in Cypriot waters in late 2011 and the massive Zohr Field was found in Egyptian waters by Italian firm Eni in 2015.These discoveries create the potential for Cyprus to export gas and for Egypt to meet more of its domestic gas needs. Lebanon has not yet discovered recoverable gas reserves, but geologic data indicates that there is the potential for Lebanon to possess significant gas resources. Israeli gas discoveries have been contested by Lebanon, which disputes an area of about 300 square miles along the countries' unsettled maritime border. The Administration has sought to mediate the maritime dispute between Israel and Lebanon.
New gas reserves could change how energy is used in the region. Since the Tamar find, Israel's electricity energy mix has begun to shift from oil to natural gas-fired power plants. Gas-fired plants emit less carbon than oil-fired plants, and continuing to convert oil plants could help Israel meet long-term carbon emissions goals. The development of gas infrastructure in Cyprus could also help the country transition from oil to gas-fired power generation. A similar shift could also occur in Lebanon should gas be discovered and related infrastructure developed. Lebanon currently uses no natural gas.
Israel now has the potential to become a gas exporter. There are a number of potential buyers for Israeli gas. Egypt, currently facing an energy crisis, will need to import gas to cover domestic demand in the near future. While Israeli gas imports are politically unpopular in Egypt, private Egyptian firms have already begun to negotiate agreements with Noble Energy to import Israeli gas. Jordan is another possible destination for Israeli gas. Repeated attacks on Egypt's Arab Gas Pipeline have decreased Jordan's energy security and increased the need for it to find alternate, reliable sources of gas. Finally, recent progress on improving diplomatic relations has opened the possibility of Israeli gas exports to Turkey. These exports could either be shipped by the construction of a direct pipeline or by liquefied natural gas (LNG) tankers crossing the Mediterranean.
Although the United States is essentially independent in its natural gas resources, it has expressed interest in the Eastern Mediterranean natural gas resources, particularly in the development of Israel's resources. Congress and the Obama Administration have undertaken a variety of efforts in regard to the region's natural gas. Legislation has been introduced in both Houses of Congress, and has become law, during the last couple of sessions that address the region's natural gas resources.
