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Significance
The developers of Israel's huge Leviathan offshore natural gas discovery in September signed the first export agreement from the field to supply Jordan's national power company. However, despite vast reserves of gas in the Eastern Mediterranean, this is the region's sole current export deal, with commercial and geopolitical factors complicating wider development.
Impacts
Sustained low gas prices are likely to rule out extra-regional deals, leaving vast reserves without markets.
In the event of Cypriot reunification, it might be possible to export offshore gas from Cyprus to Turkey.
Major IOCs will shun investment offshore of Israel for fear of Arab retaliation.
Keywords:
Cyprus,
Egypt,
Israel,
Lebanon,
Palestinians,
Turkey,
ME/NAF,
MIDDLE EAST,
economy,
industry,
energy,
gas,
foreign trade
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2016
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