Thursday

25th May 2017

Israel-EU gas pipeline to compete with Russia

  • Gas exploration ship at Israel's port of Haifa (Photo: Helix Energy Solutions Group)

The EU and three member states have backed a plan for Israel to reduce Europe’s gas dependence on Russia.

The European Commission and ministers from Cyprus, Greece, and Italy signed up to build a new gas pipeline from Israel to Europe at a meeting in Tel Aviv on Monday (3 April).

Dear EUobserver reader

Subscribe now for unrestricted access to EUobserver.

Sign up for 30 days' free trial, no obligation. Full subscription only 15 € / month or 150 € / year.

  1. Unlimited access on desktop and mobile
  2. All premium articles, analysis, commentary and investigations
  3. EUobserver archives

EUobserver is the only independent news media covering EU affairs in Brussels and all 28 member states.

♡ We value your support.

If you already have an account click here to login.

  • Israeli gas considered safer than Russia's, which has been used for political blackmail (Photo: the half-blood prince)

The 2,200-km East Med pipeline would connect Israeli and Cypriot offshore gas fields to Greece and Italy.

It is designed to come online in 2025 with a capacity of up to 16 billion cubic metres (bcm) of gas a year.

It would be the longest and deepest ever built, but an EU co-financed feasibility study by Italian firm IGI Poseidon said the project should go ahead.

Speaking in Tel Aviv on Monday, EU energy commissioner Miguel Arias Canete took a swipe at a competing Russian project, Nord Stream 2.

"North Stream is a pipeline [that] adds nothing to the [EU’s] security of supply," he said.

He said the commission’s strategy was “to diversify sources, routes, and suppliers” and hinted that Israel was a safer partner than Russia, which has used gas to blackmail neighbouring countries.

“Cyprus and Israel are very reliable suppliers,” he said.

With Nord Stream 2 disliked by Baltic, central European, and Nordic states, Canete added that the Israeli project “is a pipe that unites and will have the full support of all the members of the European Union”.

Yuval Steinitz, Israel’s energy minister, said US investment banks, such as Goldman Sachs and JP Morgan, got excited about the €6 billion project when they learned that the commission was on board.

“When they heard that the European energy commissioner was behind it [and] ready to give some assistance, that was very helpful,” he said.

He said the amount of gas discovered for export so far, up to 500 bcm, was “just the tip of the iceberg”.

Carlo Calenda, Italy’s economic development minister, said Rome would seek the backing of the G7 club of wealthy nations, which includes Canada, Japan, and the US, for the pipeline at a summit in Sicily in May.

The Cypriot energy minister Yiorgos Lakkotrypis said the project would “showcase” the region’s potential as an alternative EU supplier.

The much bigger Nord Stream 2 pipeline is designed to pump 55 bcm of gas a year to Germany from 2020, concentrating EU imports in Russia and Germany’s hands.

It faces open questions on whether EU laws would apply to its offshore section, as well as complaints by the Polish energy regulator, but Russia has already started buying pipe segments.

Political risk

The East Med pipeline is to run through Cypriot waters to avoid disputed maritime zones with Turkey and Turkish-occupied Northern Cyprus.

But EU-Israeli cooperation carries other political risks.

According to Haaretz, an Israeli newspaper, the EU’s envoy to Israel delivered a stinging rebuke on Israel’s treatment of Palestinians last week.

He said Israeli evictions in the West Bank constituted “forced transfers” in violation of Israel’s “obligations” under the Geneva Convention as an “occupying power”.

The ambassador, Lars Faaborg-Andersen, read out the EU note, which had been approved by all 28 member states in the bloc's Political and Security Committee, at a meeting with Israel’s top foreign ministry official.

The EU foreign service had planned to call a summit with Israel in February to upgrade relations, but plans were put on hold after a surge in Israeli settlement expansion.

US prevents G7 energy statement

The United States did not sign a joint statement at a G7 summit on energy because it did not want to include a reference to the Paris climate agreement.

EU doing well in global energy ranking

The majority of countries in the top-20 of the Global Energy Architecture Performance Index are members of the European Union, with Switzerland leading the list.

News in Brief

  1. Pressure grows on climate impact of EU timber harvesting
  2. US goes after Fiat Chrysler over emissions cheat
  3. Munich police break up Europe-wide burglar clan
  4. Report: VW threatened with €19.7 billion French fine
  5. Turkey begins mass trial of suspected coup leaders
  6. Merkel's CDU consolidates lead in polls
  7. France to host Russian president
  8. Switzerland votes against nuclear power

Stakeholders' Highlights

  1. UNICEFChild Alert on Myanmar: Fruits of Rapid Development yet to Reach Remote Regions
  2. Nordic Council of MinistersBecome an Explorer - 'Traces of Nordic' Seeking Storytellers Around the World
  3. Malta EU 2017Closer Cooperation and Reinforced Solidarity to Ensure Security of Gas Supply
  4. European Healthy Lifestyle AllianceHigh-Intensity Interval Training Is Therapeutic Option for Type 2 Diabetes
  5. Dialogue Platform"The West Must Help Turkey Return to a Democratic Path" a Call by Fethullah Gulen
  6. ILGA-EuropeRainbow Europe 2017 Is Live - Which Countries Are Leading on LGBTI Equality?
  7. Centre Maurits CoppietersWhen You Invest in a Refugee Woman You Help the Whole Community
  8. Eurogroup for AnimalsECJ Ruling: Member States Given No Say on Wildlife Protection In Trade
  9. European Heart NetworkCall for Urgent Adoption of EU-Wide Nutrient Profiles for Nutrition & Health Claims
  10. Counter BalanceInvestment Plan for Europe More Climate Friendly but European Parliament Shows Little Ambition
  11. Mission of China to the EUPresident Xi: China's Belt and Road Initiative Benefits People Around the World
  12. Malta EU 2017EU Strengthens Control of the Acquisition and Possession of Firearms

Latest News

  1. Openness over Brexit is 'political play', says EU ombudsman
  2. Le Pen's EU group in fresh spending scandal
  3. New EU right to data portability to cause headaches
  4. Cyber threats are inevitable, paralyzing impact is not
  5. Transparency complaints keep EU Ombudsman busy
  6. EU sets out criteria for relocating UK agencies
  7. EU states back bill against online hate speech
  8. Dutch coalition talks collapse again