Barcelona, November, 2021 – By Anwar Zibaoui, General Coordinator of ASCAME. Article originally posted in Spanish in La Vanguardia.
The global economy seems to have entered a raw materials super cycle, due to expectations of a strong post-pandemic recovery, driven by mass vaccination and economic stimulus programs. As demand rises, so do prices, and Europe is being hit hard by its heavy energy dependence. The European Union imports about $40 billion worth of natural gas, accounting for 23% of its total energy imports. Approximately 43% of it comes from Russia.
Energy security is a key concern. The EU should have alternatives to diversify its supply sources, as well as manage its political and economic risks and limit its dependence on Russian gas. Recent major natural gas discoveries in the eastern Mediterranean give the EU the option it is seeking, but also pose new challenges for governments and international players in the race to exploit the discovered wealth.
The eastern Mediterranean could become one of the main global gas supply areas. Resources are estimated at 122 trillion cubic feet of gas, plus 1.7 million cubic meters of oil, located off the coasts of Syria, Lebanon, Cyprus, Israel, Egypt and Palestine.
The overall quantities can justify the enormous costs of a new gas pipeline from the eastern Mediterranean to Italy and the rest of Europe. From the south there are already pipelines transporting gas from Algeria to the EU.
This is an opportunity for development and growth both for the producing countries and for the EU, which by 2030 will need to import some 113 billion cubic meters per year.
The region’s potential is considerable. In addition to oil and gas, it has a hydroelectric power system, wind resources and solar radiation that are among the highest in the world, as well as large tracts of desert. Technically, the region could be a major energy player and meet the needs of part of the planet.
But discoveries of gas fields are stirring the pot of regional turmoil. The absence of a maritime boundary demarcation law and the appetite of other players such as Russia and China make for a volatile and highly complicated situation.
It is essential to find the best economic and strategic solutions that optimise operations, mobilise the necessary resources and promote long-term viability.
Some Mediterranean countries will have to join forces if they want to take advantage of their resources. All public and private players in the sector are aware of the advantages of a shared vision that will develop energy cooperation between the two shores of the Mediterranean and boost the construction of a natural gas market in the region.