The Economic and Geopolitical importance of Eastern Mediterranean gas fields for Greece and the EU

“Europe is currently confronted with a unique challenge and a remarkable opportunity! A challenge and opportunity faced also by countries of the Eastern Mediterranean, EU-member and non-EU alike. For the first time ever in Europe’s energy history, the EU is guaranteed an uninterrupted supply of a traditional energy source: The already confirmed and estimated discoveries of substantial hydrocarbon deposits in the Eastern Mediterranean can be complimented by the scientifically estimated deposits within the Exclusive Economic Zone of Greece and in particular those that lie south and southwest of the island of Crete.

The estimated Greek hydrocarbon deposits complete the European energy puzzle as they contribute to a now more than possible (long-term) scenario that envisages an Israel-Cyprus-Greece-Italy pipeline network, dictating a transit route that avoids non-EU countries and thus guaranteeing an uninterrupted energy supply source for the EU, of the EU.

All these, when studies performed by the International Energy Agency and Eurogas and not only, indicate that the latest by 2020, EU natural gas demand will outgrow supply, leading to a substantial gap between demand and supply whether this comes from European production or imported from outside Europe. Moreover, the sufficient natural gas reserves available in the medium to long run are in countries which are NOT so accessible in terms of transmission distances or exist in fields that are increasingly difficult to develop (with the consequence of rising production and transport costs). Not to mention the global growing gas demand and the competition for supply especially from North America and the emerging economies of South-East Asia.

No doubt, the hydrocarbon discoveries in the Eastern Mediterranean are bound to serve as a catalyst toward greater cooperation amongst the participant countries. The joint exploitation between these countries and the launching of joint projects has the potential to change the whole political and economic scene of the entire region to the better. A most important issue, that gas-starved EU itself should set as a priority and mediate to ensure that an appropriate framework and solid plan are in place in order to complete exploration, drilling and commence exploitation as efficiently and as quickly as possible.

This is not just a project of the countries that are directly involved! It is a pan-European project of utmost importance! The energy strategy that the EU will follow today in regard to the Eastern European hydrocarbons is bound to dictate its economic future.”