How the East Med and national energy strategy are affected by the US ‘turn’

Of Thanks to Floudopoulos

The strategic goal of the country’s energy policy to become an energy hub, can be served and implemented not only by one but by several energy infrastructure projects. In this sense, the change in the US attitude towards the East Med gas pipeline is an important development, but it does not affect the national energy strategy.

After all, as the representative of the State Department clarified yesterday, the USA does not withdraw its support in the tripartite cooperation of Greece, Cyprus, Israel, nor in other major energy projects such as the electric interconnectors of Greece, Cyprus, Israel (Euroasia interconnector) and Greece of Egypt ( Euroafrica interconnector).

At the same time, another major infrastructure project, the Alexandroupolis gas terminal, which is also designed to transport Eastern Mediterranean gas to Southeastern Europe, continues to enjoy US support.

In this light, the reaction of both Greece and Cyprus to the change in the American attitude was common. The statements of the Cypriot president N. Anastasiadis and the government representative G. Economou are typical.

Mr. Anastasiadis in an interview given to Vima, stated that the East Med pipeline is an option that is still under study. The implementation of this complex program depends mainly on its financial viability, a fact that remains to be documented after the study of the final findings. In any case, the study of other options I do not consider to affect the interests of any of us, said Mr. Anastasiadis.

But government spokesman G. Economou also stressed that the government has supported the East Med project from the beginning. At the same time, however, it has supported and continues to support a number of alternative paths, which may be much more economically and technologically viable and technically feasible.

It is not up to the Government to decide which solution is economically and technically feasible. This is decided by the market. In any case, what matters is that our country is not a producer. Our country is a strong transit hub, a role that will have it, regardless of which route will be chosen, said Mr. Economou.

The reaction of the consortium

The decision of the United States to withdraw its support for the East Med gas pipeline project was a surprise move for the consortium developing the IGI Poseidon project, which, despite the reasons cited by the State Department, is not based on financial or technical reasons.

On the contrary, according to competent sources, the East Med pipeline is a project that is economically and technically sound and which will continue to develop, regardless of political decisions, such as that of the United States.

It is worth noting that in the past, DEPA and the Italian Edison, which are the shareholders of the company IGI Poseidon that develops the project, completed the environmental impact study of the pipeline, one of the most important steps required for the maturation of the project and the making the final investment decision.

In any case, the withdrawal of support from Washington was a surprise, in the sense that not long after the vote in December 2019 of the famous East Med Act, that is, the US legislation that provided, among other things, strong US support for implementation of the East Med pipeline.