Environment Ministry Blocks Oil Pipeline Deal with UAE

YERUSHALAYIM (Reuters) -
An aerial view shows storage tanks at the oil terminal of Europe Asia Pipeline Company (EAPC) off the Mediterranean coast in Ashkelon (Reuters/Amir Cohen/File Photo)

Israel’s Environmental Protection Ministry said on Thursday that it had blocked a deal with partners from the United Arab Emirates to transport oil from the Gulf to Europe via the port of Eilat that houses a fragile coral reef.

The announcement could lead to the cancellation of the deal, one of the biggest to emerge from the normalization of ties between Israel and the UAE last year. Environmentalists had petitioned Israel’s High Court to block the agreement.

Signed between an Israeli state-owned company and a venture with Emirati and Israeli owners, the deal allows for oil unloaded from tankers in the Red Sea port of Eilat to be moved across Israel in an existing pipeline to the Mediterranean coast.

Responding to the Court petition, Prime Minister Naftali Bennett’s government said it would not intervene and would instead allow the Environmental Protection Ministry to play its regulatory role limiting activities that pose ecological risks.

“We blocked the entry of dozens of oil tankers into the Gulf of Eilat,” Environmental Protection Minister Tamar Zandberg said in a statement, adding that Israel “will not become a bridge of pollution in an era of climate crisis.”

Israel’s energy minister had previously come out against the deal, also over environmental concerns.

The two companies involved in the deal – Israel’s Europe Asia Pipeline Company (EAPC), and MED-RED Land Bridge – did not immediately provide comment.