US snubs proposed EastMed gas pipeline as not viable

Building a pipeline to deliver natural gas from deposits in the Eastern Mediterranean to European markets is too expensive, not economically viable and will take too long to help countries seeking alternatives to Russian gas any time soon, a senior U.S. diplomat.

The EastMed pipeline to transfer natural gas from Israeli waters to Europe via the Greek Cypriot administration and Greece, excluding Turkey, was announced in 2016, and several agreements have been signed.

The three states aimed to complete the 6 billion euro ($6.5 billion) project by 2025, but no financing has been secured.

Plans further stalled after the United States expressed misgivings in January.

U.S. Under Secretary of State Victoria Nuland on Thursday reiterated the view that the project was not viable.

Nuland said the proposed EastMed pipeline project would not be able to immediately deliver the gas Europe now needs to swiftly wean itself off Russian energy because it would run in very deep water and construction would take more than a decade.

“We believe it is too expensive, not economically viable and will take too long,” Nuland said, after meeting Greek Cypriot President Nicos Anastasiades.

“And frankly, we don’t have 10 years, but in 10 years from now, we want to be far, far more green and far more diverse” in energy sources, Nuland said.

“When we think about hydrocarbons, both in the U.S. context and in the EU context, we are hoping for a quick transition,” she added.

“So what we are looking for within the hydrocarbon context are options that can get us more gas, more oil for this short transition period.”

Gas supplies from the Mediterranean could ease European dependence on Russian gas, following Russia’s invasion of Ukraine and subsequent calls from European leaders to reduce the continent’s reliance on Moscow.

The idea for the 1,900-kilometer (1,300-mile) pipeline to send natural gas – which is used to heat homes, generate electricity and keep industry churning – from the Eastern Mediterranean was spawned several years ago between European Union members Greece and the Greek Cypriot administration, whose leaders signed a deal in 2020 to proceed with its planning.

The EastMed pipeline had enjoyed the support of the former Trump administration in the U.S. However, in an apparent U-turn, the Biden administration in January expressed doubts about the project, citing concerns over its economic viability and environmental costs.

Turkey has long opposed the project and has stressed that any scheme that aims to sideline the rights of Turkey and the Turkish Republic of Northern Cyprus (TRNC) in the Eastern Mediterranean will be unsuccessful.

Nuland’s remarks appear to effectively shelve the project. Nuland said the U.S. and its regional partners, including Israel, Greece, the Greek Cypriot administration and Turkey, are looking for alternative ways to get gas to markets.

She said countries in the region have understood that dependence on Russian oil and gas is “an extremely bad bet” following its invasion of Ukraine.

“There is a need for alternative supplies of energy everywhere. I think countries throughout this area have understood the dependence on Russian oil and gas is an extremely bad bet and there is a convergence of interest in diversifying supply even as we work to get green,” she said.

Talks on a natural gas pipeline between Turkey and Israel are also reported to have been revived behind the scenes as one of Europe’s alternatives to Russian energy supplies. But it will take complicated maneuvering to reach a deal.

First conceived years ago, the idea is to build a subsea pipeline from Turkey to Israel’s largest offshore natural gas field, Leviathan. Gas would flow to Turkey and on to Southern European neighbors looking to diversify away from Russia.