Noble Energy Inc. (NYSE: NBL) is apparently leaning toward liquified natural gas (LNG) as the best option for exporting the gas found at Leviathan
Noble Energy CEO Charles Davidson told energy news website "Fuelfix" that the most likely scenario for getting natural gas from the Leviathan field to European and Asian markets is to build LNG capacity in Israel.
Building an undersea pipeline involves quite a few risks, such as possible sabotage along the long pipelines to consumers in Europe. Building an LNG facility minimizes some of the risks, including political ones, of the project.
Davidson added that while upstream costs of exploring and producing gas from Leviathan were “very much within our scope and scale,” Noble Energy would likely seek partners to help shoulder a multi-billion dollar LNG project.
The Tamar and Leviathan reserves hold a combined 30 trillion cubic feet of natural gas, a quantity that far exceeds Israel's domestic needs for decades.
Noble Energy is the majority shareholder in both fields, as well as Yam Tethys, along with Delek Group Ltd. (TASE: DLEKG).
Published by Globes [online], Israel business news - www.globes-online.com - on January 6, 2011
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