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The global production of natural gas has increased from 1226 bcm in 1973 to 3282 bcm in 2010 and is projected to continue rising by an annual growth rate of 1.6% between 2010 to 2035. Cyprus and Israel have recently made major offshore discoveries of natural gas, which can supply to a great extent the two countries’ current domestic energy needs for the next few decades and still export a substantial volume. MESSAGE, a global optimization model was used to explore the possible interactions between the two countries’ energy systems. Scenarios are presented that assess the export potential for electricity (generated by gas-fired power plants), liquefied natural gas (LNG) or gas-to-liquid products (GTL). The results are compared to a scenario without any available reserves to illustrate the financial benefits that will arise from the exploitation of the gas resources in the two countries.
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