Posted on 06/15/2022 6:21:41 AM PDT by SpeedyInTexas
Israel and Egypt will aim to boost natural gas exports to Europe under a memorandum of understanding (MoU) signed on Wednesday as the continent looks to replace Russian energy imports.
The framework deal signed with the European Union (EU) will be the first to allow "significant" exports of Israeli gas to Europe, Israel's energy ministry said.
(Excerpt) Read more at reuters.com ...
So now the EU has to play nice to Israel. Which has massive gas deposits offshore. I assume they are mostly underdeveloped due to fears of destruction of infrastructure by Iran and other Muslim terrorists.
“EU, Israel and Egypt sign deal to boost East Med gas exports to Europe”
Shows just how DESPERATE Europe has become - now having to bend over and kiss the feet of a country they DESPISE (Israel) for energy. And they’re not too crazy about Egypt either, since the military there threw out the Muslim Brotherhood (bummer for Hillary, in that case).
As it is, it will be a couple of years before production steps up to significant levels, and Ukraine will be long-gone.
Natural gas is considered “clean and green” relative to coal and oil.
Vicky Nuland came, she saw, the Israeli pipeline died:
Biden Administration Kills Israel-to-Europe Gas Pipeline
by Soeren Kern - February 15, 2022 at 5:00 am
https://www.gatestoneinstitute.org/18232/israel-europe-gas-pipeline
The deal today is unrelated to a potential Israel to EU pipeline.
Today’s deal sends Israel gas to Egypt over existing pipelines and forwarded to EU as LNG. LNG export terminal already exists.
More from WSJ:
“EU Signs Gas Deal With Israel, Egypt in Bid to Wean Itself Off Russian Supplies”
“Large natural-gas finds in Israeli, Cypriot and Egyptian exclusive economic zones during the past decade have turned the region into a global energy source. The eastern Mediterranean fields discovered since 2009 hold about two trillion cubic meters of gas altogether, with a similar amount likely to be found in the near future, consulting firm Wood Mackenzie estimated in 2020. Last year, the EU imported about 155 billion cubic meters of gas from Russia.”
Which LNG export terminal is this?
And where are the LNG import terminals that are slated to accept the LNG?
In total there are 36 existing LNG terminals and an additional 27 terminals under construction or in the planning stage in Europe as of 2019. Number of operational and planned liquefied natural gas (LNG) import terminals in Europe as of 2019 by country
To make a pun, this news is just gas without the facilities to process the hideously expensive LNG product [31 USD per MMBtu for LNG versus 7.5 USD per MMBtu at Henry Hub for piped natgas].
And now we have further word on the Freeport hit:
Freeport is now out until at least 90 days, and full plant operations are not expected to resume until end of the year.
This could translate into a loss of 5-10 bcm, a major hit for an already stretched global LNG market.
TTF prices spiked to an intra-day high of over $31/mmbtu, whilst Henry Hub is nosediving by 17%.
Egypt has 2 LNG export terminals.
“At least for now, figures prove him right. Egypt’s exports of natural and liquefied gas jumped during 2021 by 550% to reach $3.9 billion, compared to $600 million the year before, according to a statement attributed to the country’s Minister of Petroleum Tarek el-Mulla, issued Feb. 2 on the ministry’s Facebook page. In December, Mulla detailed that Egypt exports about 1.6 billion cubic feet per day of gas through its two LNG plants. And in a statement following the general assembly of the Egyptian Natural Gas Holding Company (EGAS) Feb. 11, the minister said that the total amount of natural gas and LNG exports reached 3.5 million tons during the first half of Egypt’s current fiscal year, which starts in July, and that he expects them to rise to 7.5 million tons by the end of it.”
And in a statement following the general assembly of the Egyptian Natural Gas Holding Company (EGAS) Feb. 11, the minister said that the total amount of natural gas and LNG exports reached 3.5 million tons during the first half of Egypt’s current fiscal year, which starts in July, and that he expects them to rise to 7.5 million tons by the end of it.”
Thank you for that detailed info. The beginning of July is coming up quick!
We can deal with the other points in my post as you get the information together for your response.
How can Biteme have any say in what Israel does Sith their pipeline.
He put the neocon whackjob Victoria Nuland in charge of things in that realm.
So, by the end of the current Egyptian fiscal on June 30, 2022, they will have produced 7.5 million tons of LNG and natgas.
No breakout of the totals of each.
No worries - we'll just pretend that it's all LNG.
From a natgas website:
No. You need to divide 10 million tonnes by 0.41 t/m³ to get 24.4 million meters cubed.
Let's say 25 million cubic meters of natgas from 10 million tons of LNG [Egypt will produce somewhat less than 7.5 million tons]
From my earlier post:
This could translate into a loss of 5-10 bcm, a major hit for an already stretched global LNG market.
5-10 bcm = 5-10 billion cubic meters = 5000-10,000 million cubic meters of natgas.
So, Egypt would need to produce 2,000 to 4,000 million tons of LNG to replace just the lost production from Freeport - but they're only producing 7.5 million tons [to be generous].
Got to up that production just a wee bit, lads!
My natgas bill was $110.00 for April 2021.
It was $155.00 for April 2022.
Quadruple the COG [cost of gas], it would be $410.00 for April 2023.
Got any spare change for a few million fellow Americans who are down on their home heating energy luck?
The EU needs supply, Greece, Turkey,Cyprus and
Israel want to handle the transfer and sales.
Law of Supply and Demand, Brandon can go pound
sand its going to happen fast.
There is some good news, though. The explosion at the Freeport Liquifaction Plant will greatly hinder President Biden’s plan to further punish Americans for the Neocon nightmare in Ukraine, as he will not be able to export nearly as much gas to Europe as he wants, so assuming the pipelines are in place, that gas can be used here to soften the market prices domestically. The plant is now going to be down at least 90 days.
Meanwhile Europeans are about to get to know Greta up close and personal, as not only do they lose that gas, Nordstream 1, the one that is running is WAY DOWN in flow rate, due to the idiot Germans not maintaining its pumping equipment, after nationalizing it. Together, based on my estimates, Europe has lost the gas required for 50 million people, and quite possibly another 50 million people, due to some countries/companies not being to pay in Rubles.
PREDICTION (not completely my own): As the European population is jobless and cowering in shelters (since there will not be gas to heat their apartments), they will BEG Russia to turn on Nordstream 2, and everything else. The price Russia extracts: NO MORE NATO. Trump wins, yet again.
American nat gas bills are not going to quadruple.
You are being hysterical.
Does Doc Brown know that you've been using the Delorean?
Two cuts in supply in two days [down to 40% of capacity] - I'm getting drunk on the fine wine of energy schadenfreude.
I guess those whip-smart neocons didn't take into account that pipeline Morlocks have to maintain the equipment.
It must be a burden carrying around all that brainpower...
My comrades are saying that the Spot Price of Natural Gas in Europe is now over $1300 per 1000 cubic meters, more than 10 times what Russia was selling them gas for (maybe 20 times, can’t remember).
When you do the energy conversion into crude oil, the $1300 comes out to exactly $5 per gallon, or $210 per barrel (again, when they were used to $10 to $20 per barrel).
Europe is SCREWED.
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