U.S. Says Israel Gas May Help Europe Diversify From Russian Fuel

BLOOMBERG – Israel’s offshore natural gas fields, potentially the largest in the Mediterranean Sea, could boost energy trade in the region and even help Europe diversify away from Russian fuel, according to U.S. Energy Secretary Ernest Moniz.

The U.S. hopes Israel can resolve domestic challenges blocking development of its Mediterranean gas field “in a timely way,” considering that they contain substantial quantities for exports, Moniz said in an interview with Bloomberg Television. Israel’s gas exports “can be used in a strategic way” in the region and beyond, he said.

“First and foremost there is a very clear economic and energy security benefit to producing the field,” Moniz said. Gas from Israel can be shipped to Turkey, where it can be pumped through pipeline networks from the Caspian Sea to Europe, he said. Israeli gas can help in “diversifying supplies away from Russia for Europe.” Israel can also export gas to its Arab neighbors, such as Egypt and Jordan, he said.

Israel’s development of the $20 billion Leviathan gas field faces new delays following a decision last month by the country’s highest court blocking the government’s proposal to prevent major regulatory changes for 10 years. Houston-based Noble Energy Inc., which is leading the project, saw its shares plummet nearly 8 percent and the company was downgraded to hold from buy at Tudor Pickering Holt & Co., on the basis that the ruling may put its expansion at risk.

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