Political Opportunities and Financial Hazards in the Eastern Mediterranean

Author
Matteo Colombo
Content Type
Commentary and Analysis
Institution
Italian Institute for International Political Studies (ISPI)
Abstract
Gas discoveries in the Eastern Mediterranean have been enthusiastically received by international observers, although the current price dynamics advises caution. This commentary both explores the opportunities of political and economic collaboration for the states of the region and beyond, and analyses the financial hazards of gas extraction and selling in a global scenario characterised by low prices and decreasing demand. The arguments put forward are that considerable public investment from regional and European states and a clear stance towards Turkey are necessary conditions to exploit gas opportunities and that the time has come for governments to take these steps. In greater detail, European states and regional governments should soon make a final decision on whether or not to build a pipeline from the gas fields of Egypt, Israel and Cyprus to Italy (EastMed) and on if Turkey should be included in the Eastern Mediterranean Gas Forum (EMGF): a regional platform to manage gas prices and the energy flow from producing to consuming states.
Topic
Energy Policy, Regional Cooperation, Natural Resources, Gas
Political Geography
Europe, Mediterranean