ISRAEL-CYPRUS GAS COLLABORATION: NEW DEVELOPMENTS UNVEILED POST HIGH-PROFILE MEETINGS

In a pivotal moment for the Eastern Mediterranean's energy landscape, Israeli Prime Minister Benjamin Netanyahu, popularly known as "Bibi", has concluded his latest round of meetings in Cyprus, involving both Cypriot and Greek counterparts. Central to these dialogues was the evolving narrative around the gas collaboration between the nations.

Prior to the summit, Bibi's approach seemed contemplative, displaying open-mindedness about developmental strategies pertaining to gas resources. However, an underlying current of interest was evident, primarily surrounding optimal integration methods with Cyprus. As the discussions progressed, this focus sharpened, with pipelines and Cyprus' Liquid Natural Gas (LNG) capacities emerging as the central themes in Bibi's post summit speeches.

Post-meeting briefs shed further light on the Israeli Prime Minister's vision. Emphasizing the urgency of the matter, Bibi set a brisk 3-4 month timeline for his team. The mandate? Arrive at definitive decisions, forge stronger ties with Cyprus, and discern the most effective approach in liaising with Chevron. The latter is of significant strategic importance, given Chevron's unique position as the operator of both the Leviathan field in Israel and the Aphrodite field in Cyprus.

POST SUMMIT: UNPACKING THE ISRAEL-CYPRUS ENERGY DIALOGUES

CHEVRON'S POTENTIAL ROLE: Discussions during the summit examined Chevron's pivotal involvement in the Cyprus-Israel energy nexus. Both nations are at a crossroads with Chevron as operator of the key fields of Aphrodite and Leviathan. As such Cyprus and Israel are more than keen to orchestrate a joint meeting with Chevron's representatives, ushering in the energy ministers of the two countries to jointly meet with Chevron at the highest levels possible to reach common solutions. An insider privy to the discussions revealed, "There's chatter about a joint engagement with Chevron's representatives; we expect clarity on this front within a week."

    • Industry Perspective: The backdrop is especially intriguing given Cyprus's ongoing Aphrodite plan renegotiations with Chevron and Israel's pursuits to crystallize its Leviathan gas export policy. The synergy between Cyprus and Israel remains critical for Chevron, imposing that the corporation veers towards a comprehensive regional strategy encompassing both nations or risks falling out with both about regional development.

  • FAST-TRACKING THE LIQUEFACTION FACILITY DECISION: The connection to a potential newbuild LNG terminal in Cyprus took center stage during the energy collaboration sections of discussions, emphasizing a rapid decision-making approach – with a target set for four months. Ultimately Israel wants a win across many fronts for its Leviathan gas and helping Cyprus to help Israel on this factor has many strategic merits.The source commented, "The intent is clear - decide on the liquefaction facility connection with Cyprus within this short timeframe – even if such an LNG build is maybe 5yrs away things have to start from now to get on the right path in such long term developments."

    • Industry Perspective: This marks a significant shift – Israel's overt pro-Cyprus stance in the realm of energy export policy is unprecedented. While Israel continues its engagements with Turkey and Egypt, its strategic pivot towards Cyprus seems both deliberate and well-conceived. Its been a long time coming that Israel would need to play its hand in regional energy in a more assertive manner and this seems to lead to the current push forward pro-Cyprus.

  • ISRAEL-CYPRUS G2G MEETING ON THE CARDS: In a nod to the growing bilateral relations, a high-profile Government-to-Government (G2G) meeting between Israel and Cyprus has been slated for Q1 2024. As our insider highlighted, "The upcoming G2G is a clear indication of the momentum." There's a palpable consensus within industry circles: Bibi's intent is unequivocally to amplify collaboration, especially in the energy domain.

    • Industry Perspective: Such a meeting wouldn't be on the anvil unless there's a concrete intent to further mutual energy interests. Israel's proactive steps signal its ambition to not just participate, but potentially spearhead the regional energy collaboration narrative.

With Chevron poised to play a potentially significant role and key decisions awaiting the nod, the future trajectory of this partnership holds immense promise.

CONCLUSION: The recent diplomatic engagements between Cyprus and Israel accentuate the centrality of their gas collaboration. With Chevron poised to play a potentially significant role and key decisions awaiting the nod, the future trajectory of this partnership holds immense promise.