The Mediterranean Sea is located between the three continents of Europe, Asia and Africa and is geopolitically important. Meanwhile, the largest gas resources are trapped in the waters of Egypt.(Photo quoted from ENI’s official website)
In fact, after ENI Company discovered the Zohr gas field (the largest gas exploration in the Mediterranean) in 2015, Egypt became the center of gas exploration in the eastern Mediterranean. Since its launch in early 2018, Mediterranean gas has played an important role in helping Egypt reduce its need for liquefied natural gas imports.
Electricity shortage is a major problem in Egypt. The country needs foreign direct investment. With about 100 million populations, Egypt is the most populous country in North Africa and the third largest in Africa. The population is projected to reach 125 million by 2030.
Agriculture is shifting to the service sector. Such a growth rate is associated with high demand. Egypt's domestic gas consumption is rising rapidly.
Moreover, due to its advanced infrastructure, especially in the field of liquefaction and gas exports, Egypt is trying to position its gas pipeline network as an energy hub in the eastern Mediterranean, in addition to providing domestic consumption. So it signed new agreements to explore for natural gas in the Mediterranean. Meanwhile, considering its advanced infrastructure, especially in the field of liquidation and gas export, and gas transmission pipeline network, Egypt is trying to turn itself into a regional hub for energy in the east of the Mediterranean, in addition to internal consumption supply.
In the regional dimension, the discovery of 320 trillion cubic meters of gas in the eastern Mediterranean could make this region an important center of the gas industry.
Therefore, Cairo's role in forming an alliance of natural gas producing countries around the Mediterranean Sea to cooperate in energy exploitation in the Eastern Mediterranean in 2019 (with the membership of Greece, Cyprus, Jordan, Italy, Israel and the Palestinian Authority) is evident.
In fact, Egypt considers the validity of the Turkish agreement with the Libyan government to be legally weak and evaluates it as contrary to its interests. Therefore, by consolidating an informal alliance between Cyprus, Egypt, Greece and Israel, it seeks to protect its gas interests in the Mediterranean.
In addition, Egypt has tried to use the natural resources in the region to explore and invest in "Mediterranean" natural gas reserves by signing an agreement with Greece to draw water borders in the eastern Mediterranean.
Apart from the direct offshore pipeline from Cyprus to the LNG facility in Egypt, Egypt and Israel have recently agreed to sign an agreement to connect the Israeli gas to the Egyptian natural gas liquefaction units.
In this approach, Egypt does not accept Turkey's policies and condemns Turkey's illegal exploration activities in the region and seeks to increase cooperation with Israel and Cyprus in the gas field.
On the other hand, the Egyptians know that gas exploration in the Eastern Mediterranean is of great importance to Europe. The golden opportunity to meet the Europians’ natural gas needs in geographical proximity and to diversify gas suppliers and reduce heavy dependence on Russia is strategic. Therefore, it has paid extensive attention to natural gas, and its discovery; development and marketing in Europe to become a North African hub for re-export of gas and increasing the exploitation of Mediterranean gas resources. This could lead to a greater role for Egypt in European gas supplies.
Farzad Ramezani Bonesh
Senior Researcher and Analyst of International Affairs
