The European Union (EU), Israel and Egypt have signed a tripartite natural gas export deal as the bloc seeks to diversify away from Russian energy.
The deal, finalised on Wednesday, June 15, 2022, at the East Mediterranean Regional Energy conference in Cairo, will allow “significant” exports of Israeli gas to Europe for the first time, the Israeli Energy Ministry noted.
“What a special moment,” European Commission Chief, Ursula von der Leyen, disclosed in a joint news conference alongside the Egyptian and Israeli Energy Ministers, adding that “I very warmly welcome the signing of this historic agreement”. Von der Leyen noted on Twitter that the agreement would contribute to Europe’s energy security.
Last year (2021), the EU imported roughly 40 percent of its gas from Russia. Countries have been struggling to reduce that dependency in order to sanction Russia over its ongoing invasion of Ukraine.
The signing of the memorandum of understanding in a five-star Cairo hotel came a day after von der Leyen and Italian Prime Minister, Mario Draghi, embarked on energy talks with Israeli Foreign Minister, Yair Lapid. “It is an outstanding step bringing our energy cooperation to the next level,” von der Leyen said on Tuesday, June 14, 2022, while visiting Israel.
Details of the new gas Deal
The EU Commission Chief stressed that the memorandum of understanding would increase the bloc’s “independence,” glossing over its newly-found reliance on Cairo and Tel Aviv, which are both accused of grave human rights violations and war crimes. Von der Leyen also praised a set of controversial agreements brokered by former US President, Donald Trump, normalising ties between Israel, the UAE and Bahrain.
Israeli gas will be brought via a pipeline to Egypt’s LNG terminal on the Mediterranean, where some will be liquefied and transported on tankers to European shores. In January 2022, the EU earmarked 657 million euros ($736m) for the construction of a 2,000-megawatt undersea electricity cable that will link the power grids of Israel, Cyprus and Greece. Von der Leyen said it would be the deepest and longest cable ever built.
Earlier Construction Deals
In 2020, Greece, Israel and Cyprus signed a deal to build an undersea pipeline to carry gas from new offshore deposits in the South-Eastern Mediterranean to continental Europe.
The proposed project, with a rough budget of $6bn, was expected to satisfy about 10 percent of the EU’s natural gas needs. But it is fraught with political and logistical complexities. At the time, Israeli officials said the EastMed pipeline would take up to seven years to build.
The pipeline’s construction has not yet begun and the EU is still conducting preliminary evaluations and cost estimations. In April 2022, a US envoy said it was too expensive, not economically viable and will take too long to provide an alternative to Russian gas.
Israel emerged as a gas exporter in recent years following major offshore discoveries. It has two major gas fields off its coast with an estimated 690 billion cubic metres of natural gas combined and continues to explore for more, including those that lie underneath the disputed maritime border with Lebanon. Tel Aviv said the Karish field is part of its UN-recognised exclusive economic zone. But Lebanon insists it is in a disputed area.
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