IOCs raise prospects for East Med gas hub

International oil companies (IOCs) are considering several routes in parallel to exploit offshore gas resources in the eastern Mediterranean. It is too early to say which route or routes will be chosen, although at least two broad proposals for uniting the production from fields in Egyptian, Cypriot and Israeli waters are on the table. Connections to existing Egyptian infrastructure currently dominate the discussions as it is both the strongest domestic market and the easiest route for potential exports. Eni, BG Group and Israel’s Delek Group have all signalled their enthusiasm for projects that will be dependent on Egyptian offtakers.