Tuesday, October 3, 2023
 
 

Murder can’t kill Italy’s interest in Egyptian gas

Any kind of deterioration between Rome and Cairo may have an impact but cannot put in danger ENI's exploitation of Zohr gas field offshore Egypt

- Advertisement -

ATHENS – Egypt’s refusal to hand over extensive phone records as part of an investigation into the killing an Italian researcher and Rome’s decision to recall its ambassador to Egypt may have caused diplomatic tensions between Cairo and Rome but is unlikely to affect Italy’s interests in Egypt, including the giant offshore Zohr gas field, which is being developed by ENI. The eastern Mediterranean is seen as a potential energy source for the European Union, lessening the bloc’s reliance on Russia.

“Business interests, particularly of that magnitude, are usually not affected by such issues. Of course, any kind of deterioration between the two states may have an impact but cannot put in danger the exploitation of Zohr gas field,” Constantinos Filis, director of research at Institute of International Relations, told New Europe on April 13 in the context on the EXPOSEC DEFENSEWORLD 2016 conference in Athens, focusing on security in southeastern Europe.

The main risk in the case of Egypt and its potential role as a supplier of the European market rests on its internal developments and the possibility of destabilisation, especially given that Libya is becoming the new “operation theatre” for the so-called Islamic State (ISIS) or Daesh and possibly NATO and other external powers, Filis said.

He said that other issues include the pace at which Zohr is going to be developed, the needs of the growing Egyptian market, given that up until recently energy prices were subsidised which made it less attractive for companies to supply the internal market, as well as the competitiveness of the Egyptian gas with regard to pricing. Moreover, Iran’s comeback in the market, although in contrast to oil in the case of natters, it will take Tehran some time to get its “share”, may affect Egypt’s role as a potential supplier to Europe, Filis said.

“Also, whether and to what extent will Egypt join forces with Cyprus and Israel will define to an extent future developments. Supplying the European market will also depend on the latter’s supply-demand gap in the next two decades,” he said.

Meanwhile, around 15 energy companies are believed to want to be part of a planned consortium, which will carry Israeli gas to Europe via Turkey, Hurriyet quoted Turcas CEO Batu Aksoy as saying. Filis told New Europe that using the Turkish soil for reaching the European market is an expensive option, as a new pipeline system within Turkey needs to be constructed. “From a political point of view, again Turkey cannot be regarded as a safe corridor for European interests, not least for the fact that its wider agenda usually collides with the European and the way [Turkish President Recep Tayyip] Erdogan deals with Ankara’s challenges is distancing his country from the West, making it a less reliable partner,” he said.

“But Turkey may well become a ‘client’ for Israeli natural gas, provided that there will be a solution to the Cyprus issue,” Filis added. Given the worsening relations between Ankara and Moscow that led to the suspension of the Turkish Stream pipeline, Turkey can receive quantities from Israel and Cyprus, seeking to secure 16 billion cubic metres, he said that any decisions cannot but take into account both economic, technical as well as geopolitical considerations.

follow on twitter @energyinsider

- Advertisement -

Subscribe to our newsletter

Co-founder / Director of Energy & Climate Policy and Security at NE Global Media

Latest

Iran protesters mark anniversary of “Bloody Friday”

Residents in the southeastern Iranian province of Sistan and...

US announces Israel’s acceptance into the Visa Waiver Program

Israeli citizens will be allowed visa-free entry into the...

UN General Assembly 2023: More progress urgently needed on Sustainable Development Goals

The 78th United Nations General Assembly (UNGA) kicked off...

Don't miss

Iran protesters mark anniversary of “Bloody Friday”

Residents in the southeastern Iranian province of Sistan and...

US announces Israel’s acceptance into the Visa Waiver Program

Israeli citizens will be allowed visa-free entry into the...

UN General Assembly 2023: More progress urgently needed on Sustainable Development Goals

The 78th United Nations General Assembly (UNGA) kicked off...

Europe’s lawmakers see opportunity for regime change a year after Iran’s latest uprising

On September 21, representatives of various political groups held...

Iran protesters mark anniversary of “Bloody Friday”

Residents in the southeastern Iranian province of Sistan and Baluchistan gathered by the thousands on September 30 to stage protests marking the first anniversary of...

US announces Israel’s acceptance into the Visa Waiver Program

Israeli citizens will be allowed visa-free entry into the United States by the end of November when Israel officially becomes the 41st member of...

Europe’s lawmakers see opportunity for regime change a year after Iran’s latest uprising

On September 21, representatives of various political groups held a meeting in the European Parliament to discuss the situation in Iran one year after...

Interest surges in Turkmen gas

Turkmenistan's huge gas reserves have been generating considerable interest from potential importers following Ashgabat's announcement in late July that it is open to the development...

European aviation industry embraces new jet fuel regulation

The European Parliament on September 13 approved a new law to increase the uptake of sustainable fuels, such as advanced biofuels or hydrogen, in...

Domestic operatives carried out cyberattacks on Iranian regime websites

Treadstone 71, a provider of cyber security consulting and training services, has published a new report on highly-publicized breaches of Iranian government websites and...

Nairobi Declaration calls for global tax on fossil fuel trade, maritime transport, aviation

As the curtains came down at the Africa Climate Summit (ACS23), heads of state and government adopted the Nairobi Declaration, calling on world leaders...

Mongolia to expand its economic and trade partnerships

Mongolia, the landlocked mineral-rich country bordered by Russia and China - the world's two preeminent authoritarian-run nations, is looking to expand its economic, trade,...