Monday, January 17, 2022

EASTMED - SECOND THOUGHTS LONG AGO ABOUT THE PIPELINE

 Filenews 17 January 2022 -  by Andreas Pibishis



When about a month ago in Jerusalem the leaders of Israel, Cyprus and Greece were ticking their clocks, the time for the future of the Eastern Mediterranean pipeline began to count down. What was agreed between Bennett, Anastasiades and Mitsotakis was not only the realization of a techno-economic study for the pipeline but in essence was the preparation of a commonly accepted justification for the non-realization of the project.

The difficulties of realizing the project were quite well known from the beginning. However, the governments of Netanyahu in Israel, Anastasiades in Cyprus and Tsipras in Greece were supportive of the realization of the project. The U.S. playing an important role in the region has not been negative despite the concerns it has had since. The fact that the project was being put under the umbrella of the EU for funding was a "cushion" for the three countries since they would not bear a serious cost.

The facts changed when Mitsotakis took over in Athens and Bennett took over in Jerusalem. The construction of the pipeline was for Athens another source of tension rather than a public utility project. Warm support from Israel began to decline as other alternatives were on the horizon.

Thus, in the last tripartite meeting in Jerusalem, Bennett, Anastasiades and Mitsotakis agreed that "in 2022 the technical feasibility and financial viability studies will be completed". The aim is to take the final decisions by the end of 2022. The three leaders will meet, meanwhile, in the middle of the year, in Cyprus, so it is not excluded that the matter will be clarified there.

They pulled the rug

The Americans relying on the financial cost of the project first came with an informal document and then officially with the statements of Amos Hohstein to pull the rug, making it in every direction that the EastMed pipeline should be left as a dream that will never be realized. The approach of the Americans does not only affect the three countries but will certainly also affect the EU, and it is not excluded that similar messages will soon be sent from Brussels.

For Washington, the Mitsotakis government's policy on Greek-American relations was a strong card. He built on the initial concerns of Athens, which certainly does not want to come into conflict with the U.S. in a period of absolute cooperation between the two countries, especially for a project that will probably not be realized.

The reaction of Anastasiades

At the time when the American non-paper on the pipeline was sent to Nicosia, other priorities were the priorities of the rulers who were running for the internal party and presidential of the coming year. Nicos Anastasiades, in response to the interview he gave to Phileleftheros, made it appear that Nicosia does not put all the eggs in the EastMed basket. Something that he repeated yesterday (a week later) with statements in Kathimerini.

If this plan is not feasible, then we are ready with our partners to consider other options. In any case, the study of other options does not affect the interests of any of us, of course the solution chosen to respect international law arrives, which for all those involved is a sine qua non, the President of the Republic of Athens said, adding that the European Union itself has adopted this project as a project of "common interest" and has invested in studies concerning it. At the same time, President Anastasiades recalls that the EU has only recently recognised natural gas as a transitional fuel towards the energy green transition.

President Anastasiades stressed that cooperation with Greece and Israel extends to dozens of other sectors - economy, investments, tourism, green development, defence, security, etc., - and that this pipeline is only one part of these partnerships. "The tripartite meetings were not held to build EastMed. That is why we have similar meetings with all the countries of the region and the Arabian Gulf.

They don't see it negatively

In Nicosia, government circles commenting yesterday on the developments recorded the position of the Cypriot government as follows:

1. There is full support on the US side for procedures within the framework of International Law, while reference is made to the work of the HSCN and the relevant statements of Judith Garber (U.S. Ambassador) on Friday on the platform.

2. Absolute respect for the rights of the CD and all other states in the region

3. Support for dialogue processes and inclusive approach since the US calls on Turkey to join the mechanisms instead of fighting them.

4. The reason Americans are reported negatively for EastMed, is sustainability and green transition. Possibly also because it causes tensions.

5. However, they support all the other options already under discussion for the exploitation of the Natural Gas, for e.g. a pipeline from Cyprus to Egypt for which the processes are already progressing. As supported by the projects EuroAfrica (electronic interconnection Greece Egypt) and EuroAsia (electricity interconnection of Cyprus Israel Greece)

6. They support and encourage the Forum on Gas in the Middle East, which is currently chaired by Cyprus and which in its first article states that it is open to all countries in the region that respect international law and in particular the law of the sea.

Realistic approach called for by Amos Hohstein

Amos Hohstein, speaking to the Tribune, called for a pragmatic approach to the EastMed pipeline. "The issue of tensions in the Eastern Mediterranean was not created by energy and will not be solved by energy. It is a much bigger issue. We recognize the existence of tensions, but our policy is not guided by them," Amos Hohstein stresses in the exclusive interview with "Vima".

The high-ranking state department senior advisor for Global Energy Security, a key figure in shaping the Biden administration's energy strategy, spoke to us a few 24 hours after the release of key elements of the now high-profile non-paper in which Washington appears to strongly support the promotion of electrical interconnections in the Eastern Mediterranean (Euro-Asia and Euro-Africa). Interconnectors), but at the same time consider that the EastMed Gas Pipeline (EMGP) is not economically viable and is not a project with a long-term perspective – so it would be preferable to abandon it.

But Amos Hohstein, one of the most experienced American energy officials who has spent a lot of time in the Eastern Mediterranean and during the Obama presidency, adds that the United States "does not tell the countries of the region what to do. The governments of the Eastern Mediterranean states will make their own decisions based on their estimates of whether the EastMed pipeline project is a project to which they want to remain committed. All we are saying is that the US strongly supports energy cooperation in the region, this project is not worth the effort, but we want to lead towards projects that are just as large and ambitious, with a much broader impact and durability. We will work with you to make them a reality."