Europe needs to swiftly find alternative sources of energy following Russia’s invasion of Ukraine but a proposed pipeline taking east Mediterranean gas to the continent via Israel, Cyprus and Greece is not viable, a senior U.S. diplomat said.
“The idea there is to build a very long pipeline in very deep water over some 10 years and we believe that it is too expensive, not economically viable and will take too long,” said Victoria Nuland, undersecretary of state for political affairs.
“Frankly, we don't have 10 years,” she told reporters in the Cypriot capital Nicosia.
Europe’s need to diversify away from Russian gas has come into sharper focus because of the war in Ukraine. The EU plans to cut its reliance on Russian gas by two-thirds this year and end all Russian fuel imports by 2027.
Cyprus, Israel and Greece have been considering a pipeline connecting east Mediterranean gas discoveries to Europe, but the project took a setback when the U.S. pulled its political support for the project in January.
The three countries are expected to take a decision on the viability of the $6 billion pipeline, known as EastMed, this year.
“There is a need for alternative supplies of energy everywhere. I think countries throughout this area have understood the dependence on Russian oil and gas is an extremely bad bet and there is a convergence of interest in diversifying supply even as we work to get green,” Nuland said.
Recently, there has been revived talk of a pipeline from Israeli offshore fields to Turkey, previously put on the backburner over political tensions between them.
Such an option would require consultation with Cyprus, which Turkey does not recognize, if it were to pass Cypriot waters.
Recommended Reading
E&P Highlights: June 4, 2024
2024-06-03 - Here’s a roundup of the latest E&P headlines, with new contracts awarded and larger commitments made for oil and gas exploration in South Korea and Australia.
E&P Highlights: July 15, 2024
2024-07-15 - Here’s a roundup of the latest E&P headlines, including Freeport LNG’s restart after Hurricane Beryl and ADNOC’s deployment of AI-powered tech at its offshore fields.
E&P Highlights: July 1, 2024
2024-07-01 - Here’s a roundup of the latest E&P headlines, including the Israeli government approving increased gas export at the Leviathan Field and Equinor winning a FEED contract for the all-electric Fram Sør Field.
Southeast Asia NatGas Projects Could Unlock $100B Boom- Rystad
2024-07-17 - Southeast Asia's offshore gas industry is set for a $100 billion boom by 2028, driven by a flurry of final investment decisions by oil and gas majors and national oil companies, according to Rystad Energy.
Third Suriname Find for Petronas, Exxon Could Support 100,000 bbl/d FPSO
2024-05-17 - A recent find offshore Suriname in Block 52 by Petronas and Exxon Mobil could support a 100,000 bbl/d FPSO development, according to Wood Mackenzie.