Abstract
It has been a decade since the Southeastern Mediterranean region came to the forefront after the discovery of significant gas deposits in offshore fields located within the Exclusive Economic Zones (EEZ’s) of Egypt, Cyprus and Israel. Gradually, the region drew the attention of major oil companies (Total, Statoil, ENI, Exxon Mobil, BP, Rosneft Qatargas) who proceeded in a series of drilling operation projects in order to share the exploitation of the potential regional gas deposits with the involved countries in the future. Τhe aim of this paper on the first level, is to investigate the viability and competitiveness of a forthcoming energy hub in Southeastern Mediterranean, its role and the inevitably fierce competition by other well-established or emerging gas producing areas. In this task, there are a number of direct and indirect parameters that need to be taken under deep consideration. For example, the dominant options of implementing a Mediterranean energy hub, translated into the construction of the EastMed Pipeline or the promotion of an LNG Terminals Network respectively. On the second stage the paper examines and evaluates the interests of European Union and Russia in terms of energy demand and supply. Undoubtedly, the European Union is reconsidering its energy policy, seeking to enhance its steady gas supply by implementing a strategy of diversification in counterparts, routes and sources. On the other hand, Russia’s energy policy is aiming to raise market share and global influence. Is there any common ground?
Highlights
Energy has always been a key component of enhancing European sustainability and welfare
Graupner H., “Could EU energy security be guaranteed without Nord Stream 2?”, Deutche Welle (2019 February 8), available at https://www.dw.com/en/could-eu-energy-security-be-guaranteed-without-nord-stream-2/a-47430427 Geropoulos K., “With an eye on Nord Stream-2, EU Parliament, Council agree on new pipeline rules”, New Europe
Russia though is waiting for a clear signal from Brussels in order to proceed with line 2 of TurkStream Pipeline through the Balkans, adopting a modest approach with European Union
Summary
Energy has always been a key component of enhancing European sustainability and welfare. As global oil prices seem to stabilise around USD65-USD75 per barrel and the drilling technology is being updated in a cost-saving direction, the region draws again the attention of major oil and energy companies; the ongoing drilling operations of which, are bringing into light new potential reserves of many trillion cubic feet in offshore blocks of Cyprus. Under this scope, different energy policies come to the forefront as there is a vast necessity to ensure Europe’s energy independence in turbulent times. On the other hand though, it should seriously taken into deep consideration that proven difficulties such as conflicted geopolitical interests, high infrastructutre costs and competitiveness in terms of pricing by other global gas suppliers (Russia, the US, Qatar etc.) and networks, might jeopardise the Mediterranean Energy Hub Project on the long term
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