A Shifting Energy Landscape in the Eastern Mediterranean

Sarah Howell, Vice President, Gastech

Each week, the global energy map changes a little more. On Monday, the EU signed an MoU with Egypt and Israel, to begin the process of receiving natural gas from Eastern Mediterranean suppliers. Israeli gas would be sent on to Egypt, using Egypt’s LNG export infrastructure, to provide critical supplies of LNG to the EU at a time when it is facing a severe energy crisis. As Russia continues to halt its gas flows, and with the EU committed to significantly reducing its dependence on Russian gas by 2030, this MoU could be yet another major milestone for the sector.

The significance of the MoU has far wider-reaching consequences than just enabling Europe to meet its energy demands. The EU has also committed to supporting Egypt and Israel boost their own gas exploration and production. This would enable both countries to take further advantage of Egypt’s LNG infrastructure, and profit from the wider increase in demand for LNG worldwide.

Longer term, support for an Eastern Mediterranean gas pipeline to Europe, which has a long history in energy policy circles, may well return. While focus for the moment is fully on LNG, the more the Eastern Med becomes a natural gas hub, the more likely it is that policymakers will see the benefits of permanent infrastructure.

The MoU signed earlier this week makes reference to exploring the idea of a pipeline, and the EU Commission’s President, Ursula von der Leyen hinted at a potential ‘hydrogen-ready’ pipeline for the future. An agreement to build a gas pipeline, between Cyprus, Greece, and Israel, is already in place but significant investment and institutional backing would be needed to make it a reality.

Already this week there has been movement from the industry, seemingly capitalising on the momentum of the MoU. Gastech co-host Chevron has signed their own agreement with Egypt to explore its offshore gas fields. Any new finds there may well further strengthen Egypt’s gas ambitions.

The potential of the Eastern Mediterranean gas basin to alleviate Europe’s supply crunch will be a key focus of high-level panel discussions at Gastech 2022. The Eastern Mediterranean Gas Forum, established in 2019, has engaged key players in the region in dialogue towards overcoming longstanding political hurdles. This week’s deal is a significant step forward, and a signal that there is further progress to be made.

By convening ministers, policymakers and industry leaders, Gastech will serve as a platform for unlocking further international cooperation in this crucial, strategic region for Europe’s long-term energy security and for Africa’s just transition.

To find out more about the conference, visit our website at: https://www.gastechevent.com/the-gastech-exhibition/gastech-hydrogen/

#Gastech, Fiera Milano, Italy 5-8 September 2022