Israel sees ‘Med-Streams’ in service of regional diplomacy

by Sevil Küçükkoşum | Hürriyet Daily News

 

Building a pipeline that will carry Israeli gas to Turkey would enhance political normalization between two countries, Israeli envoy says, contrary to Turkish efforts to separate two processes

Transferring Israeli gas through Turkey to the international market is profitable for both Turkey and Israel and cooperation in the energy field could pave the way for resolving regional problems, a senior diplomat from the Jewish state said, as he apparently referred to probable normalization of bilateral relations between Turkey and Israel with the help of such cooperation at a bilateral level.

 

“We should start thinking at least about a set of Med-Streams, a set of pipelines and LNG that will enable us to exploit not only oil and gas, but also to create another political environment,” Ambassador Michael Lotem, special envoy for energy of the Israeli Foreign Ministry, said yesterday, referring to prospects of building of a pipeline from Israel to Turkey.

 

“Can we use energy; can we use gas, beyond the commercial value of it, in the service of politics, in the service of diplomacy?” Lotem asked in a speech delivered at the second and last day of the 12th Turkish International Oil & Gas Conference (TUROGE).

 

“I say that we should… and if we are talking about [it], especially for Turkey, for Europe,” the Israeli ambassador said, citing the BTC project, which he describes “a valued example of how an energy project can initiate geopolitics.”

 

Lotem was among the speakers in a session on the East Mediterranean as part of a panel titled “Potential Sources of Alternative Supplies – Regional Developments.”

Can Turkey Leverage Kurdish Crude?

by Denise Natali | Al-Monitor

The proposed energy framework between Turkey and the Kurdistan Regional Government (KRG) has raised hopes for independent Kurdish oil exports and a viable way to pay international oil companies (IOCs) in the Kurdistan Region. Some think the framework could eventually give the Kurds an alternative revenue source that replaces Ankara for Baghdad as the region’s financier. Yet, while encouraging Kurdish energy development, Turkey still has made no clear commitment to an independent pipeline that would circumvent Iraqi state sovereignty. This is because Ankara’s endgame is not only securing Kurdish crude, but maximizing Turkish commercial interests in Iraq. Doing so will likely entail negotiations with Baghdad that include Erbil, but which prioritize Iraq’s territorial integrity, secure Ankara’s interests and seek concessions from the Kurds.

Turkey’s quest for Kurdish crude is not surprising, given its geographical proximity to the region, domestic energy needs and growing influence over the KRG. Ankara is not only well-positioned to continue "bartering" operations with Erbil — exchanging trucked, Kurdish hydrocarbons for diesel products — but to further entrench its energy interests by establishing a state-affiliated company that would invest in Kurdish oil fields. This tactical move would allow Ankara to circumvent Baghdad’s blacklist of companies without jeopardizing its state-led (TPAO) hydrocarbons investments in southern Iraq.

Still, beyond creative media reporting and sporadic, inflammatory remarks by Turkish Prime Minister Recep Tayyip Erdogan, Turkey has taken no real steps to promote viable, independent Kurdish exports that would jeopardize Turkish investments in the rest of Iraq. Erdogan may have stated the KRG’s rights to sign its own energy deals within the framework of the Iraqi constitution, but he has affirmed that Turkey’s interests were to increase volumes of the existing pipeline. To ease concerns by Iraqis and international partners, Turkish Minister of Energy Taner Yildiz further indicated that Turkey remains committed to southern Iraq. He also suggested ways that Turkey could develop a joint project with his “Iraqi brethren,” including a third pipeline that would export southern Iraqi crude to Turkey.

Turkey favors Nabucco West as gas export route

By Gulgiz Dadashova | AzerNews

Turkish Energy Minister Taner Yildiz has said that the project on gas transportation from the Caspian region to Europe - Nabucco West - is a more ambitious project than Trans Adriatic Pipeline (TAP).

Nabucco West and TAP are viewed as options to transport gas from the Azerbaijan's biggest gas field and one of the largest in the world - Shah Deniz.

Nabucco West is a short-cut version of the Nabucco project, which envisages construction of a pipeline from the Turkish-Bulgarian border to Austria. The project's shareholders are Bulgarian Energy Holding, Romanian Transgaz, Turkish Botas, Austrian OMV, German RWE and Hungary's FGSZ.

TAP project is designed to transport gas from the Caspian region via Greece and Albania and across the Adriatic Sea to southern Italy and further into western Europe. TAP's initial capacity will be 10 billion cubic meters per year, but it is easily expandable to 20 billion cubic meters. TAP's shareholders are AXPO of Switzerland (42.5 percent), Norway's Statoil (42.5 percent) and E.ON Ruhrgas of Germany (15 percent).

The minister said that while choosing the final route for gas supplies to Europe, the economic benefits from transportation will be taken into account. "In this sense the Nabucco West project is more ambitious."

However, Taner added, it is the Shah Deniz consortium, who will choose the final route.

Nabucco West and TAP submitted their bids to the Shah Deniz consortium in late March.

Turkey says joint energy projects with Greek Cyprus, Israel possible

by Bülent Keneş | Today's Zaman

Weary of a lingering political tension undermining potential large-scale energy deals in its surrounding region, Turkey sees it possible to cooperate with Greek Cyprus and Israel in joint energy projects in the Mediterranean “so long as the political atmosphere allows it,” Turkish Energy Minister Taner Yıldız told a meeting in Baku on Monday.

The minister was speaking at a meeting with the State Oil Company of Azerbaijan Republic (SOCAR) president on the sidelines of the World Economic Forum Strategic Dialogue on the future of the South Caucasus and Central Asia that kicked off in Baku on Monday.

“In case of a possible remedy to political issues that remain a gridlock hindering further prosperity in our region, Turkey will be ready to take steps in order to ensure a lasting peace environment,” Yıldız said in a rare statement of what can be regarded as "extending an olive branch.”

Underlining that a recent Israeli apology to Ankara over the Mavi Marmara raid should not be seen as an excuse for future energy partnerships with this country, Yıldız told reporters: “But it is possible that a cooperation in energy between Turkey and Israel follow an anticipated rapprochement.” He said Turkey will then “not only warm to partnering in energy deals with Israel but also would like to see Greek Cyprus be involved here.”

But the minister has some reservations as he cites a single condition Turkey has long seen as vital: Greek Cyprus abiding by international law. “If we are able to make sure the energy resources in the eastern Mediterranean are made use of in line with international law, this will be an opportunity for regional peace and stability,” Yıldız said. “If we see the energy plans that are against international law continue, then this is a threat to regional security.”

After Cyprus bailout, Israeli apology, gas takes centre stage

by Alakbar Raufoglu and Andy Dabilis | Southeast European Times

The prospect of normalisation between Israel and Turkey following last month's apology has opened the questions about the relationship between Israel, Greece and Cyprus.

The fallout between Israel and Turkey over the past four years pushed Israel for strategic and economic reasons to cozy up to Greece and Cyprus, Turkey's historic rivals in the Eastern Mediterranean.

"The relations that were built in the last four years with Greece and Cyprus were to a great extent a result of the severe crisis with Turkey," Alon Liel, the former Israeli ambassador to Turkey, told SETimes.

Some analysts say this geopolitical and economic calculation could change following Israeli Prime Minister Benjamin Netanyahu's apology to Turkey for the 2010 raid on the Turkish aid ship, the Mavi Marmara, as it tried to breach an Israeli blockade of Gaza, resulting in the death of nine Turkish activists.

Mavi Marmara led to a severing of relations between once close regional powers. The apology opened the way to a still nascent rapprochement.

The prospect of Turkey and Israel rekindling their once close relationship has many observers looking to the large but disputed gas deposits in the Eastern Mediterranean that could transform the geopolitical future of the region.

Minister: Turkey uses energy resources for regional stabilisation and development

by A. Taghiyeva | Trend


Turkey is using energy resources and power projects for the stabilisation and development of the region, Turkish Minister of Energy and Natural Resources Taner Yildiz said at a meeting of the World Economic Forum (Davos Forum) in Baku today.

Turkey has restructured its energy sector twofold during the past 10 years, he said.

He added that during this period, the country's GDP has increased threefold. This testifies to the successful development of the Turkish economic and energy sectors.

This means because Turkey has achieved so much in the energy sector, today the country can implement different energy and economic projects with many world countries.

 "Along with the implementation of the South Stream project with Russia, Turkey is also successfully implementing the Trans-Anatolian gas pipeline (TANAP) project with fraternal country Azerbaijan," Yildiz said.

 "On the other hand, Turkey continues its energy cooperation with Iran, despite the political problems of the latter," he said. "It is also developing a partnership in the energy sector with neighbouring Iraq."

The minister also stressed such projects as Baku-Tbilisi-Kars and Baku-Tbilisi-Erzurum, which are the key tasks in the transport and energy security of the region.

According to Yildiz, while connecting Asia's production capacity with the European consumer markets, Turkey plays an important role of an energy transport bridge in the region.

Source: http://en.trend.az/capital/business/2136525.html

Turkey-Israel: the new Great Game

by Daniel Dombey | Financial Times

There is a new Great Game afoot and it is taking place beneath the sea floor of the eastern Mediterranean.

Turkey and Israel’s tentative reconciliation is a process so fraught that US Secretary of State John Kerry appeared in Istanbul at the weekend to chivvy the two sides towards restoring full diplomatic ties. But if the steps he set out can be taken — agreeing compensation for nine Turks killed by Israeli forces in 2010, avoiding inflammatory talk, exchange of ambassadors — then a whole series of changes could be unleashed from Damascus to Brussels.

 In particular, there is the question of a pipeline that could ferry newly discovered Israeli natural gas to energy-hungry Turkey — a move that would knit the two US allies closer together, despite enduring suspicions.

“It is possible that cooperation in energy between Turkey and Israel could follow an anticipated rapprochement,” said Taner Yilidz, Turkey’s energy minister, on Monday.

Turkish officials caution that bilateral talks on such cooperation can only really get going after ambassadors are exchanged — but add that business contacts on the topic are already burgeoning.

Ozgur Altug at BGC partners in Istanbul contends that rapprochement means that “relatively weak Israel-Turkey economic relations will pick up again”. He observes that although Turkish exports to Israel have risen over the last decade (falling back slightly in 2012) to their current level of $2.5bn, they have declined as a proportion of Ankara’s total exports (of which they now account for about 1.5 per cent rather than more than 2 per cent previously).

The ‘Great Game’ in the Levant

by Semih Idiz | Al-Monitor

With billions of cubic meters in estimated gas reserves, the Eastern Mediterranean, or the “Levant Basin” by another name, is turning into the stage for a contemporary version of the 19th Century “Great Game,” which has as much potential for catalyzing peace, as it does for contributing to new tensions in a region already rife with conflict.

The key event this respect came on March 30, the historic date when natural gas from the Tamar field, off the coast of Israel, started flowing to the Israeli mainland, thus kicking off a process that will not only make the Jewish state largely energy independent, but also turn it into a key supplier for European markets.

The Tamar field, discovered as recently as 2009, is said to hold 250 billion cubic meters [427 billion square feet] of gas, and is the smaller of Israel’s two offshore fields, the bigger one being the Leviathan field with its estimated 425 billion cubic meters of gas, but which has yet to be developed.

Texas-based Noble Energy and the Israeli Delek Energy, the two largest shareholders in the Israel gas fields are said to be looking for a go-ahead now from the Israel government to export the larger portion of the gas, since demand in Israel is insufficient to cover the cost of developing the Leviathan field.

Turkish Minister: Anatolia only feasible gas route for Israel, Greek Cyprus

Hürriyet Daily News

Turkey awaits normalization with Israel to discuss energy projects, as Israel’s energy plans would only be reasonable if Turkey was involved, Turkish Energy Minister has said

Turkey is not indifferent toward Israel’s energy projects for transferring the Eastern Mediterranean natural gas and oil to the international markets, since the resources would be not be feasible unless they were transferred through Turkey, Turkish Energy Minister Taner Yıldız said.

“It is the same for Greek Cyprus,” Yıldız told reporters yesterday. “It will have no benefit to your people if you say ‘I will do it even if it is expensive.’ I’m telling this both for Israel and Greek Cyprus,” he said, adding that the projects would be meaningful only if the right move is made.

But, discussing energy deals before the restoration of ties between Turkey and Israel has been finalized would be impossible, according to the minister.

“As relations normalize in the future, then we can discuss if natural gas could be transferred by a pipeline through Turkey,” the minister said.

Turkey dismayed at lack of US partnership on second nuclear plant: Minister

Hurriyet Daily News

Turkey expected to form a partnership with the United States to build Turkey’s second planned nuclear plant, Energy Minister Tamer Yıldız told daily Hürriyet in an interview published April 6.

“If I don’t build the nuclear plant with the U.S., which strategic project will I do? Will I sell tomatoes and peppers?” Yıldız said, adding that Turkey had made a proposition to the “highest officials” in Washington about participating in the tender.

“They told us that the project was not feasible. It may not be feasible, but it is strategic. [Making] this strategic contribution falls upon Washington,” he said.

China and a Japanese-French joint venture are competing to build the plant, which will be located in the Black Sea province of Sinop, Yıldız said April 4. The first plant in Akkuyu, in the Mediterranean province of Mersin, will be constructed by Russia’s Rosatom company.

Turkey: Does Ankara Hold the Key to Ending Cyprus Financial Woes?

by Justin Vela | Eurasianet.org

Some 60 trillion cubic feet of gas reserves around the divided island of Cyprus, a find possibly worth hundreds of billions of dollars, could find its way to Turkish and European markets through Turkey. Combining a deal of exporting natural gas from Cyprus with delivering water and electricity to the island may benefit Ankara to mediate a settlement for the divided island. (Photo: Council of Europe)

Turkey’s potential as a regional energy hub could help alleviate the financial turmoil hitting the divided Mediterranean island of Cyprus, analysts say. But before any steps are taken, Ankara would like to see movement toward a resolution of the decades-long conflict between Greek and Turkish Cypriots. And that is a long shot over the short term.

The International Monetary Fund’s 1-billion-euro (over $1.28 billion) contribution to a 10-billion-euro (over $12.8 billion) rescue package, announced on April 3, may ease concerns that the meltdown of Cyprus’ financial system could trigger a major crisis for the euro zone, but Greek Cypriots still have an incentive to seek alternative ways of stimulating their economy, observers note.

Turkey, capitalizing on its growing role as a regional energy hub, has offered options. But its 38-year-long territorial conflict with Cyprus over the self-declared Turkish Republic of Northern Cyprus could prove an insurmountable barrier to a solution. The major area of possible cooperation is over hydrocarbon deposits in the waters off Cyprus. These resources -- estimated to include some 60 trillion cubic feet of gas reserves, a find possibly worth hundreds of billions of dollars -- are deeply contentious. Greek Cypriots have granted exploration licenses to international energy companies without consultation with northern Cyprus.