The Eastern Mediterranean pipeline, which is designed to connect Israeli gas fields with Europe, passing through Cyprus and Greece by liquefying in Egypt, is facing big problems that could lead to the failure of the project.

Cyprus Changes Approach

In this context, Cyprus has changed its plan to become a corridor for Tel Aviv’s exports to Europe, settling for a project aimed at meeting its needs for Israeli gas, which, as the head of the Cypriot energy department said, his country hopes, during negotiations that will begin next next month to develop plans for a pipeline linking Israeli gas fields in the eastern Mediterranean.

The proposals put forward by the new Cypriot government that came to power in March 2023 represent a markedly different approach to delivering gas to Europe and other markets than its predecessors.

New Pipeline Proposal

Instead of a 2,000-kilometer (1,243-mile) eastern Mediterranean pipeline to Europe, the new government is proposing a much shorter pipeline connecting Cyprus to fields off the coast of Israel. Once in Nicosia, natural gas can be converted to liquefied gas and then shipped to Europe.

Significant Gas Deposits

Significant gas deposits have been discovered in the eastern Mediterranean region over the past 10 years, most of which are off the coast of Israel and Egypt.

Negotiations and Obstacles

Negotiations on the construction of the 2,000-kilometer Eastern Mediterranean Gas Pipeline and the transportation of gas to Europe through it began almost 10 years ago, with partial financial support from the European Union.

From time to time, the project has faced obstacles and challenges as Washington withdrew its support due to high costs and long construction period, while some participating countries, including Cyprus, find it difficult to implement for a number of reasons.

Cyprus Energy Minister’s Comments

Cyprus Energy Minister George Papanastasiou, an expert in the energy industry for almost 4 decades, said: “Cyprus discoveries are small and not yet operational and for us the new plan offers multiple answers and represents a win-win.”

He explained that the gas pipeline project in the Eastern Mediterranean, which has been discussed between Israel, Cyprus and Greece for almost a decade, has not taken any steps to implement it and has faced big problems.

Benefits of New Project

The Cypriot official believes that the new project, in addition to being shorter and faster to build, connects 300 kilometers to fields off the coast of Israel, provides his country with access to cheap gas and gives Tel Aviv another export outlet besides Egypt.

Papanastasiou noted that since Cyprus’ gas needs are estimated at just 0.7 billion cubic meters, the government also wants to have gas liquefaction capacity as it will encourage investors to ensure that gas is now available to the “most thirsty market” in Europe.

Egypt’s Perspective

Talk of modifying the eastern Mediterranean gas pipeline is in Egypt’s favour, as the project has always posed a threat to its LNG exports, given the lack of a share of Israeli gas, while reducing domestic production and increasing domestic demand.

The Eastern Mediterranean pipeline project has jeopardized Egypt’s plan to increase liquefied gas exports, as it is the only country in the Eastern Mediterranean with liquefaction stations, importing gas from Israel and re-exporting it to Europe after liquefaction.

Joint Projects and Future Plans

Papanastasiou stressed that the joint projects have received the support of Israeli Prime Minister Benjamin Netanyahu and Cypriot President Nikos Christodoulides, and two technical committees with experts from both sides will be set up in July to start discussions.

He said that the first committee would deal with gas and hydrogen and the second committee would deal with electricity, explaining that the new pipeline’s ability to transport hydrogen, which is a clean fuel, made it a project that would qualify for future financial support from such institutions. like the European Investment Bank or the European Bank for Rehabilitation, Reconstruction and Development, which stopped funding projects related to fossil fuels.

“Once we develop the technology and get enough green electricity, the pipelines can be used to transport hydrogen,” he added, adding that Cyprus and Israel are also looking at accelerating connections to their electricity grids via a submarine line.

Conclusion

The Eastern Mediterranean pipeline project faces significant challenges and obstacles, leading Cyprus to change its approach and propose a new, shorter pipeline to meet its own needs for Israeli gas. The project has also posed a threat to Egypt’s LNG exports, and joint projects and future plans are being discussed to address these issues and potentially qualify for future financial support from institutions focused on clean fuels.

Source: agencies + energy