Caspian Report - Issue: 08 - Fall 2014

deposits discovered so far in Cyprus
and Israel are not expected to have
a transformative effect on Europe’s
energy situation, they can hardly be
ignored as long as Europe continues
to voice concerns about its energy
security (and especially given
the ongoing crisis in Ukraine). In
any case, the picture may change as
there are additional exploratory efforts
under way in Cyprus, Israel and
Greece.
Although Greece is not a central
player in this energy-focused power
game, it is more than just an interested
party. Cyprus and especially
Israel will, of course, make the key
decisions regarding energy matters
in the Eastern Mediterranean
as they own the resources. Greece,
on the other hand, is not a producer.
Though that may change in due
course, there is no certainty. For
the time being it can only hope to
be a transit country. The economic
stakes will be high if the choice for
an export route is an LNG plant, as
there are several Greek ship owners
that have invested heavily in LNG
carriers.
In addition, LNG terminals, either
the existing one in Revythousa,
near Athens, or the planned ones
in Northern Greece may become
part of an natural gas network that
will link with a number of Balkan
and Central European interconnectors,
thereby making a substantial
contribution to the energy security
of countries like Bulgaria, Hungary,
Slovakia and Austria. Finally, if technological
and financial conditions
allow and if more reserves are confirmed,
Greece could also benefit
through the construction of a pipeline
(East Mediterranean Gas Corridor)
to transport natural gas from
the Israeli and Cypriot deposits in
the Eastern Mediterranean through
Greece to Western European markets,
especially if combined with
prospective Greek hydrocarbons
production.
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CASPIAN REPORT, FALL 2014