European and Israeli governments gave the go-ahead Monday for a Mediterranean pipeline to carry natural gas from Israel to Europe, with a completion target of 2025.
The planned 2,000-km (1,248-mile) pipeline aims to link gas fields off the coasts of Israel and Cyprus with Greece and possibly Italy, at a cost of up to $6.4 billion.
“This is going to be the longest and deepest sub-sea gas pipeline in the world,” said Israeli Energy Minister Yuval Steinitz.
At a joint news conference in Tel Aviv, Israel, energy ministers from the four nations — as well as the EU’s commissioner for climate action and energy, Miguel Arias Canete — pledged their commitment to the project.
A feasibility study has been completed, and the next few years will focus on “proper development activities,” with a final investment decision expected by 2020, said Elio Ruggeri, chief executive of IGI Poseidon, the project owners.
The EU is seeking to reduce its gas dependence on Russia and diversify its sources, while Israel is looking to find markets for its new gas discoveries.
“Israel has been unable to leverage its gas to create closer ties to its Arab neighbors for various reasons,” Jim Krane, an expert in Middle East energy geopolitics at Rice University’s Baker Institute, told Arab News.
“One possible customer, Egypt, recently made a major discovery of its own, and no longer needs Israeli gas. Others, like Jordan, need the gas but worry about the downsides of energy dependence on Israel,” he said.
“Israel’s next best option is to find a way to move its gas to Europe. For the Europeans, Israeli and Cypriot gas would provide a welcome diversification to supplies from Russia and North Africa.”
However, any Israeli-EU gas pipeline faces huge obstacles. “European gas demand is flat. Israeli gas will have to compete amid a worldwide glut of LNG (liquefied natural gas), which has fallen significantly in price,” Krane said.
“Finally, it’s never easy to build a pipeline across multiple maritime boundaries. Plans for long international pipelines rarely succeed.”
Altay Atli, a research associate at Sabanci University’s Istanbul Policy Center, told Arab News the timetable may be feasible, but this pipeline is not the only game in town.
“I think 2025 is a realistic target for the completion of the project, but it will take some time (as well as feasibility studies and political decisions) for the project to take off,” he said.
“Israel has other options on the table, including a pipeline project that will take its gas through Cypriot waters to Turkey, where Turkey will purchase part of the gas and the rest will be exported to the European network through Turkish pipelines,” Atli added.
“The Turkish route is shorter than the Greece-Italy route. It’s less complicated technically, and it’s easier to fill in without the need to find additional resources. In sum, it’s economically more feasible.”
Source: Arab News
GMT 15:34 2018 Friday ,14 December
Moscow remains ready for Putin-Trump meetingGMT 13:40 2018 Friday ,14 December
Britain and EU should prepare for second Brexit referendumGMT 11:43 2018 Friday ,14 December
Kosovo to build an army amid tensions with SerbiaGMT 11:52 2018 Thursday ,13 December
Britain's May to appeal to EU for help to salvage Brexit dealGMT 10:30 2018 Wednesday ,12 December
Huawei Executive Gets Bail In Case Rattling China TiesGMT 09:01 2018 Tuesday ,11 December
US marines missing after aircraft collision off Japan confirmed deadGMT 08:55 2018 Monday ,10 December
Top EU court to issue decision on reversal of BrexitGMT 08:37 2018 Monday ,10 December
Peruvians vote for anti-corruption reformsMaintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Send your comments
Your comment as a visitor