“Businesses in the United States, Israel and other countries were planning to invest billions in export terminals. Now, those projects are being canceled or delayed.”
“HOUSTON — A few months ago, Israel and some Arab countries were laying the groundwork for an energy partnership that held the potential for economic cooperation between once-hostile neighbors.
Israel started selling natural gas to Egypt, which in turn was reviving two gas export terminals, attracting badly needed foreign investment and opening a path for Israeli gas to Europe. Lebanon was preparing to drill its first offshore gas well after years of delays. And Palestinian representatives joined a regional forum with officials from Israel and other countries to lift energy exports to Europe.
But the coronavirus pandemic has abruptly interrupted those efforts, delaying exploration and exports. Gas prices, already low after a relatively warm winter in the Northern Hemisphere, have plummeted and storage facilities have filled to the brim. Struggling international oil and gas companies have slashed investment budgets, jettisoning projects.
The damage to the gas trade goes well beyond the Middle East, hurting businesses from Australia to the U.S. Gulf Coast. The pandemic is putting the brakes on a two-decade-long global expansion for natural gas, which has been replacing coal for electricity and heating and even competing with oil as a transportation fuel in some developing countries.”