Low chances for Iran, Israeli gas to reach Europe - expert

Low chances for Iran, Israeli gas to reach Europe - expert

Baku, Azerbaijan, May 23
By Elena Kosolapova - Trend:

The chances of Iranian and Israeli gas to reach European market are not good, Charles Ellinas, CEO of Cyprus-based energy consultancy e-CNHC believes.

“Gas prices in Europe are too low to make such prospects commercially viable,” Ellinas, who is also a nonresident senior fellow with the Atlantic Council and has over thirty-five years of experience in the oil and gas sector, told Trend.

The expert noted that right now gas prices in Europe are under $5/ British Thermal Unit (mmBTU) and are forecast to remain in the range between of $5/ mmBTU and $6/mmBTU in the long-term, according to Platts.

Meanwhile, the price of Iranian gas supplying to Turkey was at $5.8/mmBTU in 2016, Ellinas said.
“At such price by the time it reaches Europe it will be over $7/mmBTU, which would be too high to attract buyers,” the analyst said.

In addition, according to Ellinas, most Iranian gas is used domestically, not leaving much for export.
The expert believes, that similar comments apply to Israeli gas, whichever way it is transported to Europe.

He noted that because of the price Noble and its partners, developing the Tamar gas field in Israel, charge The Israel Electric Corporation, even before any gas leaves Israel it will cost over $4/mmBTU.

“Then you have to add the cost of pipelines to reach Europe. Whether it is a pipeline through Cyprus to Greece and then Europe or a pipeline through Turkey, the price of gas in Europe needs to be over $7-8/mmBTU to make such exports viable,” Ellinas said.

The expert stressed that based on the above, there are no viable routes to supply Iranian or Israeli gas to Europe at prices within the long-term forecast of $5-6/mmBTU, adding that even the more competitive US LNG is struggling to get inroads into Europe within such prices.
“Asia may be a better market for Iranian or Israeli gas, but in the form of LNG. And even then it will be challenging,” Ellinas said.
According to OPEC, Iran has 33.5 trillion cubic meters of proven gas reserves - the second largest in the world after Russia.
In Israel, two giant fields - Tamar and Leviathan were discovered in 2009 and 2010 respectively. Gas reserves of these fields amount to tens of trillion cubic feet.

Follow the author on Twitter: @E_Kosolapova

Number of enterprises launched in Iran's Fars Province increases
Number of enterprises launched in Iran's Fars Province increases
Kazakhstan eyes attracting latest US technologies in soybeans processing
Kazakhstan eyes attracting latest US technologies in soybeans processing
Kazakhstan's Zhambyl to reduce energy-dependence by attracting investments in renewables
Kazakhstan's Zhambyl to reduce energy-dependence by attracting investments in renewables
Loading Bars
Latest
Number of enterprises launched in Iran's Fars Province increases
UK records another 16,170 coronavirus cases with 648 deaths
UAE launches satellite Falcon Eye into space
Azerbaijani, Russian FMs hold telephone conversation
Iran ranked among states with high efficiency turbine tech.
Kyrgyz ambassador and Secretary of Senate of Pakistan discuss inter-parliamentary cooperation
Restrictions mulled for New Year celebrations amid COVID-19 outbreak in Turkey
Georgian FM meets with Polish counterpart in Warsaw
Protesters in Yerevan demand Pashinyan's resignation (VIDEO)
Pfizer-BioNTech seeks full marketing approval from UK for COVID-19 vaccine
Kazakhstan eyes attracting latest US technologies in soybeans processing
Kazakhstan's Zhambyl to reduce energy-dependence by attracting investments in renewables
Germany reports record 487 COVID-19 deaths in 24 hours
Belarus reports 1,689 new COVID-19 cases, 139,908 in total
Azerbaijan eyes to use potential of liberated lands for fishery development
UN office announces agenda of special session of General Assembly on COVID-19 initiated by Azerbaijani president
Additional assets brought for Russian peacekeeping contingent delivered - Azerbaijani MoD (PHOTO)
Azerbaijan gains brilliant victory by liberating its lands - Chairman of National Congress of Azerbaijanis of Georgia
Azerbaijani Defense Ministry expresses condolences to Iranian side (PHOTO)
Deposit liabilities of Georgian banking system decreases month-in-month
Phase 3 of OPEC+ could lead to immediate fall in oil prices
Azerbaijan reveals TOP-10 private non-oil exporters
Iranian Energy Exchange announces products to be on sale on December 5
Azerbaijani banks to fully сancel loan debts of martyrs' families
Lending by Georgian commercial banks down
Iran reveals forecast for oil sales for next year
Lari depreciation remains one of leading factors in Georgian debt growth
Georgia decides to ease entry regime for its citizens
Aztelekom LLC announces tender for purchase of electronic spare parts
Bentley hires jets to fly car parts to Britain during Brexit
National Bank of Georgia reveals volume of international reserves
Georgia sees increase in overdue debt
Uzbekistan, Afghanistan eye to achieve twofold growth in trade
Russia discloses volumes of agricultural products supplied to Georgia
Azerbaijan's State Security Service prosecutes Lebanese terrorist mercenary (VIDEO)
Ashgabat City Telephone Network opens tender for audit
EU extends relief measures for COVID-hit loans to March
Turkmenistan expands international cooperation through environmental diplomacy
Iran expands mobile phone imports
Azerbaijani Clean City OJSC signs tender contract
Israel expects $220 million in non-defence trade with Bahrain in 2021
Azerbaijan determines damage inflicted by Armenia on Fuzuli, Jabrayil districts
Turkey to continue providing all kinds of assistance to Azerbaijan - Turkish Minister of National Defense
Iran’s Bahar Azadi gold coin price still rising
Employment increases in Iran's Sistan and Baluchestan Province
Azerbaijan reduces lead exports
Investment in tourism transport infrastructure to help dev’t this sector in Turkmenistan - UNWTO
Georgia expects to start adoption of Oil Stockholding Act soon
Iranian president declares budget revenues for next year
Uzbekistan’s Agrobank to fund entrepreneurial activity under Islamic sharia law
Tightening of quarantine regime may be inevitable - TABIB
Iran expects increase of budget revenues
Georgian CEC to summarize final results of parliamentary elections on December 3
COVID-19 pandemic to displace business class cars from car rental market
Azerbaijan unveils data on local insurers' fees for 10M2020
Building for Turkish-Russian joint monitoring center under construction - Turkish Minister of National Defense
Georgia cultivates significant amount of land to combat marble bugs
Uzbekistan’s Tashkent registers largest number of private enterprises
Tourism can help protect, promote Turkmenistan’s culture - UNWTO
Volume of sales through Azexport portal continues to grow
New electricity facilities to be put into operation in Iran
Japanese agency funds project aimed at improving locust control in Uzbekistan
Georgian oil company trying to contain fuel price rise
Uzbekistan, Germany in talks over partnership with EU
Value of OIC states' import from Turkey shows decline
Azerbaijan's non-oil exports via 'Single Window' system increase
SOCAR Polymer remains export leader in Azerbaijan's private sector
Georgia aims to transpose renewables acquis
Kazakhstan's crude petroleum oil exports to Greece plummet
Construction of Kerki airport passenger terminal being completed in Turkmenistan
Azerbaijan's AzerGold becomes one of export leaders in public sector
Trilateral statement on Karabakh to contribute to long-term peace in region - Kazakhstan's President
Kazakhstan discloses volume of doses to be produced by COVID-19 vaccine plant
ASTS+ trading, clearing system to up productivity of Kazakhstan Stock Exchange
Azerbaijan announces recent COVID-19 death rate
Iran reveals its COVID-19 data for December 2
Azerbaijan presents video footage from Lachin's Garygyshlag village (VIDEO)
Oil prices steady as market awaits output deal
Iran's export to Afghanistan increases
Prices of Kazakh-manufactured diesel fuel down
Azerbaijan's October 2020 non-oil exports slightly rise
Expenses on construction of enterprises in Iran’s Semnan Province climbs
Resources from Southern Gas Corridor to be available via Serbian-Hungarian pipeline
Iran's non-oil export has increases
Iron ore concentrate production of giant Iranian steel companies grows
Events in Belarus, Nagorno-Karabakh region, Kyrgyzstan complicate situation in CSTO area – Putin
Turkmenistan working on development of infrastructure for gas export
Uzbekistan’s State Tax Committee announces tender for IT services
Azerbaijan confirms 3,942 new COVID-19 cases, 2,265 recoveries
Azerbaijan shows video footage from Soyudlu gold deposit of Kalbajar district (VIDEO)
Turkish companies involved in construction of new road to Azerbaijan’s Shusha (Exclusive)
Georgia aims to introduce mobile virtual network operators in 2021
Georgian 2021 budget bill calls for issuing new Eurobonds
Turkmenistan to conclude technical inventory of companies involved in fuel, energy sector
Details of Iran's budget for next year announced
Azerbaijan's oil fund discloses 11M2020 value of revenues from ACG oil-gas fields block
Kazakhstan to develop soil and geobotanical maps for its agriculture lands
SOFAZ's incomes from sale of condensate produced in Shah Deniz remain unchanged
Kazakhstan increases imports from Vietnam despite COVID-19 restrictions
Stability in South Caucasus very important for Turkey - FM
All news