“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”
(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