“Bring­ing Cypriot and Is­raeli off­shore vol­umes to a com­bined LNG ca­pac­ity in Egypt is not only more eco­nom­i­cally fea­si­ble but also would be a di­rect sta­bil­ity fac­tor of un­known or­der”

Financial Mirror (Cyprus) - - OPINION -

(Ha­mas, Hezbol­lah) are pre­sent­ing a di­rect threat. For Cyprus and its com­pa­tri­ots, the role of Tur­key is also al­ways in the back­ground, look­ing at po­ten­tial di­rect mil­i­tary con­fronta­tions off­shore.

Bring­ing to­gether the two main mil­i­tary pow­ers on the South­ern Rim of the Mediter­ranean (Egypt, Is­rael) with Cyprus (and Greece) presents an op­por­tu­nity to build a re­gional block able to counter or mit­i­gate third-party in­ter­fer­ence. By re­mov­ing Egypt from the con­no­ta­tion, a pos­si­ble al­liance has been put on ice.

Com­mer­cially, a deep­wa­ter off­shore gas pipeline is also less at­trac­tive and func­tional. The ba­sic rule for a pipeline is that there is a fixed mar­ket ca­pa­ble of tak­ing the vol­umes large enough to get the right im­pact on­shore Europe, while at the same time, they are slap­ping Cairo in the face.

Egypt’s dream of an en­ergy hub po­si­tion de­pends on the in­te­gra­tion of Is­raeli-Cypriot vol­umes into their sys­tem. Com­mer­cially it is also the most at­trac­tive. LNG is more fea­si­ble than an­other main pipeline, with a stag­ger­ing ini­tial cost of $7 bil­lion.

As some­times is said “En­ergy = Geopol­i­tics”, mostly used as a pre­cur­sor to ad­dress­ing wars and con­flicts. In the EastMed, how­ever, link­ing en­ergy and re­gional pol­i­tics could be the main driver be­hind sta­bil­ity and pros­per­ity.

No doubt that the EU is will­ing to in­vest in that, as in­sta­bil­ity on the South­ern Rim or Greek-Cypriot area is a

Newspapers in English

Newspapers from Cyprus

© PressReader. All rights reserved.