Cyprus, Greece and Israel are pushing for a subsea gas pipeline connecting them with Europe in the framework of a new call by the European Commission for Projects of Common Interest (PCIs). Yiorgos Lakkotrypis, Minister of Energy. Commerce, Industry & Tourism, has already discussed the issue with Maros Sefcovic, the European Commissioner for Energy. At this stage, the three countries are requesting EU funding for a feasibility study from the Connecting Europe Facility, which has an allocated budget of €5.85 billion.
Essentially, the proposal envisions pooling proven Israeli and Cypriot gas finds as an alternative source of natural gas for Europe. Russia currently supplies approximately 30% of the gas consumed by Europe, which fears further disruptions in the continuous flow of gas, given the dispute between Russia and Ukraine. Russian President Vladimir Putin recently suggested that his country would pull out of the planned South Stream pipeline project – running cutting across the Black Sea and onto the European continent via Bulgaria. Putin has proposed an alternative pipeline from Russia to Europe via Turkey.
The estimated cost of an East Mediterranean pipeline varies from $10 billion to $15 billion – sometimes higher – posing questions as to whether the gas can be sold at a competitive price.
For more information please visit the Cyprus Investment Promotion Agency.
