US Pulls Out of EastMed Pipeline Project

The United States has notified Israel of its decision to withdraw its support for the proposed EastMed natural gas pipeline from Israel to Europe, The Jerusalem Post reported, citing a diplomatic source on Tuesday.

Turkish President Tayyip Erdogan also spoke of the U.S. decision, saying on Tuesday that “this project is not something that can happen. They (the United States) carried out all the analyses, and they saw it had no positive sides. In other words, the cost calculations don’t add up,” Erdogan told reporters during a visit to Albania, according to Reuters quoting broadcaster NTV.

“The United States takes all its steps based on capital in any case. Since the cost calculations for this didn’t add up, it pulled its support,” he added.

Turkey has for years opposed the project, which involved Greece, Cyprus and Israel and the backing of the former Trump administration. Erdogan reiterated his view that the project “cannot work without Turkey.”

Promoted as an alternative to help ease Europe’s dependence on Russian gas, the 1,180-mile project would initially be expected to carry 10 billion cubic meters of gas a year. But the future of the venture has been plunged into doubt.

Washington had already made its direction known to Athens. “The American side expressed to the Greek side reservations as to the rationale of the EastMed pipeline, [and] raised issues of its economic viability and environmental [issues],” a Greek government source told Reuters.

“The Greek side highlighted that this project has been declared a ‘special project’ by the European Union, and any decision on its viability will logically have an economic impact,” the official said.

Erdogan noted the possibility of other approaches. He said that “if [Israeli gas] would be brought to Europe, it could only be done through Turkey. Is there any hope for now? We can sit and talk about the conditions.”

“Is there no hope of reaching something now? We can sit down and discuss terms,” he was quoted by Reuters as saying, without elaborating.

State Department Senior Advisor for Energy Security Amos Hochstein has noted the financial and environmental obstacles to the project.

“Why would we build a fossil fuel pipeline between the EastMed and Europe when our entire policy is to support new technology… and new investments in going green and in going clean?” he asked.

“By the time this pipeline is built we will have spent billions of taxpayer money on something that is obsolete – not only obsolete but against our collective interest between the U.S. and Europe.”

“This is politicians talking, but there’s [nothing] there,” Hochstein said. “This project probably will not happen because it’s too complicated, too expensive and too late in the arch of history.”