Eastern Mediterranean states cooperate on gas supply issues
Eastern Mediterranean states are strengthening cooperation in a number of directions. Recently Israel, Greece, Italy, Egypt and other countries have established a gas organization, the main representative office of which will be located in Cyprus. The partnership has been strengthened by signing an agreement and developing a detailed structure of the new association.
The organization was based on the activities of the existing Gas Forum, in which the regional states took part. The work of 7 participating countries is aimed at creating a strong energy market, strengthening trade relations and providing the necessary amount of raw materials to the states of the region in accordance with the growing demand. Besides, the association plans to further increase local gas export to Europe and other countries.
Gas Forum for the states of the eastern Mediterranean region was created in 2019, but before the unification it was a platform for exchange of ideas and discussions between the participants, now it has reached a new level, where the states will be able to help each other and jointly solve pressing problems.
The participants held a video conference during which they made proposals and additions to the charter of the organization. According to the representative of Egypt, members of the association plan to create an energy center for this region. Besides, they are happy with the new participants and are interested in close cooperation with other states, such as France and the USA.
Since 2018 Egypt has been fully meeting domestic gas demand with its own production. Cairo also plans to resume export deliveries to various countries. In addition, Egypt and Cyprus are working on a project to build a pipeline for liquefied natural gas. It is laid on the bottom of the Mediterranean Sea, and will be used to transport fuel to European countries. Cairo also supplies gas to Jordan, which is used for the needs of the chemical complex located in Aqaba.
Before the revolutionary events that took place in Egypt in 2011, the country was actively developing the energy industry. It was not only successfully meeting the local demand for gas, but also exported it to Israel, CIS countries and Jordan. However, instability in the political segment slowed down a number of projects to explore new fields and increase production at existing ones. Gas production decreased and the demand for gas in the domestic market was steadily growing. This situation resulted in the raw materials deficit and it was decided to resume imports. Until 20018 Egypt bought about 30 million cubic meters of gas, but now the country managed to boost local production again. The Cairo Government hopes that the new organization will help actively develop the segment and attract new investments to increase gas production and supplies to the partner countries.
