EU Proposes EastMed Gas Pipeline to Greece
The European Commission has included a proposed pipeline connecting gas reserves in the Eastern Mediterranean to Greece via Cyprus and Crete on its list of Projects of Common Interest (PCI). This means that the project will have access to a fast-track permitting process and special funding.
The project is sponsored by energy group Edison and Greece’s DEPA International Projects through their joint venture, IGI Poseidon. However, the joint venture has yet to make a final investment decision (FID) on the pipeline. The pipeline would connect various gas fields in the Eastern Mediterranean, including some offshore Israel, to Greece.
The decision on the FID has been delayed due to the Israeli war on Gaza. Originally, the decision was expected to be made by the end of this year.
Italy’s energy authority, ARERA, along with authorities in Greece and Cyprus, stated on Tuesday that the costs of building the EastMed pipeline cannot be included in the national tariffs of the three countries. They also ruled out the possibility of gas grid operators in Italy, Greece, and Cyprus having to pay compensation for the construction of the infrastructure.
