Gas Link to Turkey Not Just Talk

YERUSHALAYIM -

Talk of an Israeli natural gas link to Turkey is not just talk.

Despite failure to achieve a diplomatic rapprochement between the two countries, international bidding for a stake in delivering gas to Turkey has commenced, Globes reported on Monday.

More than ten bids were submitted in the tender by the partners in Leviathan for the export of natural gas to Turkey. The bids ranged from 7 billion cubic meters (BCM) a year to 10 BCM, amounts that could generate $22-31 billion revenue, assuming a 15-year gas supply contract at $6 per million British Thermal Units (mmBTU), the price of natural gas in Israel’s domestic market.

Among the bidders are Turcas Petrol AS, German electricity utility RWE and Zorlu Group, industry sources said.

In January, it was reported that the Leviathan partners had invited several dozen Turkish companies to bid in a gas supply contract from the gas field. The deal would include laying a pipeline to Turkey from Leviathan’s proposed floating production, storage and offloading (FPSO) ship, which deliver gas to Israeli and regional customers.

It was not immediately clear, however, whether the Turkish government would approve of any such deal with Israeli suppliers.