Israel-Cyprus-EU Gas Pipeline: Talk Hots Up, Action Unlikely

Lacking alternate regional gas markets, Israeli politicians are pushing for a sub-sea pipeline to Europe. The EU has given the 8-9 bcm/year project tentative backing. But commercial and geopolitical factors make it highly unlikely.

A 1,500km sub-sea gas pipeline, which would link the 40 tcf-plus of gas discovered offshore Israel and Cyprus with European markets via Greece and Italy, has been mooted ever since key Israeli fields were discovered in 2010 and 2011. Plans got a boost when the 5 tcf Aphrodite field was discovered offshore Cyprus (but close to the Israeli maritime border and the key Leviathan field) in 2012, with Cypriot politicians keen to play up their country’s value to the EU as well as the pan-Hellenic angle. (CONTINUED - 800 WORDS)