Israel's Minister of National Infrastructures, Energy and Water Resources has met with his Greek and Cypriot counterparts Panos Skourletis and Yiorgos Lakkotrypis to discuss laying an underwater natural gas pipeline from Israel's offshore gas fields via Cyprus and Greece to mainland Europe.
The pipeline would be used for natural gas exports to Europe. The three ministers also discussed building a liquid gas terminal in northern Greece at Alexandroupolis. The three ministers agreed that the director generals of their ministries would meet during October and draft an initial document on the technical and financial aspects of such a pipeline.
Such a project raises major feasibility concerns. The pipeline would extend over 1,300 kilometers in waters that are 2.5 kilometers deep. No comparable pipeline of such a length exists anywhere in the world in water that is so deep. The project would raise the price of the natural gas and make it uncompetitive compared with current short-term spot prices in Europe, which are $4-5 per thermal unit. The onshore pipeline from Greece will also be costly and add to the price of the natural gas.
At the meeting, Steinitz stressed the importance of cooperation between Israel, Greece and Cyprus to enhance energy security. The prime ministers of the three countries will meet in Israel at the end of December to consider the matter further.
Published by Globes [online], Israel business news - www.globes-online.com - on September 30, 2016
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