Egypt, Cyprus focus on natural gas pipeline amid tensions in eastern Mediterranean
At a time when tensions are on the rise in the eastern Mediterranean, Egypt and Cyprus are intensifying talks to start building an offshore gas pipeline from the Aphrodite gas field to Cairo in preparation for re-export to Europe.
At a time when the oil and gas industry is facing economic uncertainty as part of the consequences of the coronavirus pandemic and the decline in global prices as a result of an oversupply, the eastern Mediterranean region is marred by a frantic struggle over natural gas resources.
Eastern Mediterranean countries have rushed to demarcate their maritime borders and exclusive economic zones in a bid to facilitate the gas exploration process.
The United States Geological Survey estimated the natural gas reserve in the Mediterranean in 2017 at 340-360 trillion cubic feet with a financial value ranging between $700 billion and $3 trillion.
In January 2019, Egypt, Cyprus, Greece, Israel, Italy, Jordan and the Palestinian Authority established the Eastern Mediterranean Gas Forum in an attempt to create a regional gas market, reduce infrastructure costs and offer competitive prices.
