Cyprus LNG export project may aid Leviathan

An LNG project in Israel will likely face fierce opposition from environmental groups and local residents.

Cyprus will publish a tender for the construction of a liquefied natural gas (LNG) plant, which Israeli gas exploration companies could use for gas exports. The partners in Leviathan, which need an LNG facility to export natural gas to the Far East, are still considering building a plant in Israel, but such a project will likely face fierce opposition from environmental groups and residents in the vicinity of any projected plant.

A similar struggle against the gas exploration companies and the government was recently decided, when the National Planning and Building Commission rejected a plan to build a small land natural gas terminal to bring ashore gas from the Tamar field. The terminal was due to be built on a site in the Dor coast area.

Sources inform ''Globes'' that the Ministry of Finance is considering cancelling an initiative to build a gasification plant for LNG imports. The international tender for building the plant was due to open this summer, after six consortia passed the prequalification stage. However, the government decided to wait for the results of the Leviathan exploratory well before deciding whether to build a gasification plant. Sources in the government believe that, as a result of the Leviathan discovery, there is no need for a gasification plant.

The planned Cypriot LNG plant will cover a 250-acre site and cost $4-6 billion to build. The tender is due to be published at the same time as oil and gas exploration tenders by the Cypriot government.

Published by Globes [online], Israel business news - www.globes-online.com - on January 6, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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