Tag: F51

THE POTENTIAL IMPACT OF COVID-19 ON MEGA ENERGY PROJECTS AND LNG SHIPPING INFRASTRUCTURE; THE CASE OF EASTMED PIPELINE

Antonios STRATAKIS

PhD Candidate, University of Piraeus – Department of Maritime Studies

stratakismaritime@gmail.com

Theodore PELAGIDIS

Professor of Economics, University of Piraeus – Department of Maritime Studies, Deputy Governor – Bank of Greece, Tpelagidis@bankofgreece.gr

pelagidi@unipi.gr

Abstract

It is a matter of fact that COVID-19 pandemic has brought significant changes in political, economic and social level worldwide. The aim of this paper is to examine the potential impact of the pandemic on the launching of large scale energy projects in Southeast Mediterranean region, and in particular the construction of EastMed Pipeline. During 2020, many energy projects across the globe were postponed and that trend is mainly attributed to: a) the economic recession brought by COVID-19, b) a lack of investment appetite by major energy companies whose financial position was severely hit by the pandemic and the volatile energy prices and c) the switching to the use of alternative energy sources (mainly renewables and hydrogen) in an attempt to minimize the global share of fossil fuels and their emissions, the so-called “energy transition” process. This paper takes into account whether all the above exogenous factors create serious implications to the development of the most important mega energy project of Southeast Mediterranean in terms of energy geopolitics, the EastMed Pipeline. Finally, the paper examines the conflicted geopolitical interests of regional players such as Greece, Cyprus, Israel, Turkey and Egypt, as well as the role of European Union and the United States in the energy equation of Southeast Mediterranean.

Keywords: COVID-19, Economic recession, EastMed pipeline, Alternative energy sources, Southeast Mediterranean, Investments

JEL classification: F10, F51, R41, R42, R48

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THE IMPORTANCE OF SOUTHEAST MEDITERRANEAN NATURAL GAS RESERVES TO EU’S ENERGY SECURITY; A GEOPOLITICAL AND ECONOMIC APPROACH

Antonios STRATAKIS

PhD Candidate, University of Piraeus – Department of Maritime Studies,

stratakismaritime@gmail.com

Theodore PELAGIDIS

Professor of Economics, University of Piraeus – Department of Maritime Studies, Deputy Governor – Bank of Greece, pelagidi@unipi.gr

Tpelagidis@bankofgreece.gr

Abstract

It has been more than a decade since the Southeast Mediterranean region came to the forefront after the discovery of significant gas reserves in offshore fields located within the maritime territories of Egypt, Cyprus and Israel (Levantine Basin). Gradually, the region drew the attention of major oil companies (Total, Statoil, ENI, Exxon Mobil, BP, Rosneft Qatargas) which intensified their drilling operation activities; aiming to share the exploitation of the potential regional gas deposits with the involved countries in the future. Τhe aim of this paper is to investigate (a) the economic impact of these discoveries on the countries concerned, (b) what role can these discoveries play in EU’s energy plans, given the stated policy to reduce dependence on Russian supplies and (c) the implementation of a forthcoming energy hub in Southeast Mediterranean region, its viability and competitiveness towards other well-established or emerging gas producing areas. Finally, the paper examines the conflicted interests of European Union, Russia and USA in the energy equation of the region.

Keywords: Energy Corridors, Pipeline Networks, EastMed Project, LNG Terminals, Southeast Mediterranean

JEL classification: F10, F51, R41, R42, R48

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