Page 5 - MEOG Week 22 2022

MEOG COMMENTARY MEOG

Map showing previous
and planned auction
areas.

She said that existing pipeline infrastructure proposes creating a link between Israel, Cyprus
would be used as well as an onshore conduit that and mainland Europe. “Such projects would not
crosses the border near the town of Nitzana, only connect vital energy markets but would also
described in available documentation as an help prepare the region for the clean energy tran-
“optional” line. Meanwhile, Elharrar added that sition,” it said.
the EastMed pipeline continues to be examined Of course, this was before the start of the
“and the question is whether it would be eco- Russo-Ukraine conflict in late February and the
nomically worthwhile to build the pipeline”. subsequent sea-change in global energy markets.
The $7bn project was announced in 2020 However, US Under-Secretary of State Victoria
with a deal signed between Cyprus, Greece and Nuland said in April that the pipeline was not an
Israel to construct a 9-12bcm per year, 1,900- economically viable solution to Europe’s search
km pipeline before Turkey protested about for alternatives to Russian supplies.
the planned route, which it said would be laid Meanwhile, Elharrar said that supplying the
through maritime territory claimed by Ankara. local market would “always take priority, also
In January, the US State Department issued from the point of view of the required reserves
a statement stating it was withdrawing support for years ahead”. She added: “Now, with the start
for EastMed in favour of projects to bring renew- of an additional process, the fourth, for natural
able energy to Europe. “We remain committed gas exploration, and the hope that we will suc-
to physically interconnecting East Med energy ceed, we can also increase the scale of blue and
to Europe,” the State Department said. “We are white gas production and exports to Europe.”
shifting our focus to electricity interconnectors Since gas was discovered in the Eastern Med-
that can support both gas and renewable energy iterranean over a decade ago, it has been seen as
sources.” a means of weaning Europe off Russian flows.
In EastMed’s stead, Washington has now Give the success of E&P efforts offshore Israel,
lent its support to projects such as EuroAfrica, Tel Aviv is looking to leverage this position to
which calls for the construction of a power cable potentially establish long-term sales deals with
linking Egypt and Greece and EuroAsia, which the bloc.™

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