Nobel Energy to Build Pipeline from Block 12

Noble Energy is expected to construct an underground pipeline from Block 12 to Cyprus, Globes reported. The exercise is part of a venture to set up an LNG terminal off Cyprus's southern coast that will be to enable exports to Europe and Asia.

The pipeline would be 300 kilometers long and may cost up to $2 billion. The LNG terminal will cost about $8-10 billion to construct.

Experts and commentators in Israel believe that the economic justification is border-line for an LNG infrastructure and export for the amount of gas discovered so far in Cypriot waters. Therefore additional quantities of gas are required from Israeli gas fields or future discoveries in Cypriot waters.

Israel is yet to announce if it will support a partnership in a Cypriot LNG installation or prefer to set up its own installation in Israeli waters.