Monday, February 1, 2016

Israel Hopes for EU Leverage with East Mediterranean Push

 
Reuters, 01/02 15:36 CET

By Luke Baker

JERUSALEM (Reuters) – Israel, Cyprus and Greece have agreed to deepen their energy, security and tourism ties in the Eastern Mediterranean, a deal that may have implications for Israel’s testy relationship with the European Union, too.

The agreement, signed in Nicosia last week by a beaming Prime Minister Benjamin Netanyahu, Greek premier Alexis Tsipras and Cypriot President Nicos Anastasiades, focused on energy and the exploitation of natural gas deposits off Israel and Cyprus.

The Leviathan and Aphrodite fields are unlikely to start exporting before 2019 or 2020. Nevertheless, the ambition is to transport gas by pipeline, possibly via Turkey, or in liquefied form by ship to Europe, plugging the East Mediterranean into Europe’s grid and providing an alternative to Russia – which has far worse relations with the EU due to the Ukraine crisis.

With global energy prices expected to remain low for some time, analysts question whether East Mediterranean gas will be the bonanza investors hope, but that didn’t prevent the leaders singing the praises of their joint declaration. 

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Source: Euronews

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