If the gas emergency does not pass. The European Union and the green transition and fields in the Mediterranean

This article is from the Europe Matters newsletter, a double look at how Europe and the United States are connected today more than ever before, by correspondents Francesca Basso (Brussels) and Viviana Mazza (New York). You can register here.

One urgency European electricity market reform To reduce the impact of escalating gas prices on consumers and rush Create the necessary infrastructure to ensure energy security The European Union and Italy seem to have fallen off the radar of politics and the general public. With me Gas prices range between 30 and 50 euros per MWh – much less than More than 300 euros per megawatt-hour last August But it’s still more than twice that of pre-war Ukraine – and with stocks filling up as scheduled, The situation appears to be heading for normalization.

But there is no need to be overly optimistic, because there is no guarantee that the winter will be mild and that other favorable events will repeat themselves. The level of uncertainty remains highthe European Union can not let its guard down Gas diplomacy It must deploy all its resources in an effort to find mid-range solutions. Because as the events of the past few months have shown, it is not only about energy but above all Geopolitics. Energy also plays a vital role in helping Political and social stability Those bordering the Mediterranean, such as Tunisiathe Libya or theMiddle Eastern.

the storage levels Gas in the EU is high compared to average and full At 72% of capacity. We are on track to reach the 90% target before the November 1 deadline, EU Energy Commissioner Cadre Simson announced at the end of the Energy Council meeting in Luxembourg on June 19. On the other hand, Italy has already reached about 80%. But this is not enough to rest assured, a harsher winter than before can create critical problems. A week ago, the ministers of the 27 European Union countries failed to reach an agreement to reform the European electricity market He should have stimulated energy production from renewable sources to prevent the price volatility that has resulted in recent months from cuts in gas supplies by Russia. France and Germany failed to reach an agreement and additional negotiations would be required.

Meanwhile, the European Union’s measures are moving towards disengagement from dependence on Russian gas as the main tool RepowerEu, the additional chapter to the national Pnrr where member states must include projects that contribute to eliminating dependence on Russian fossil fuels. Before the war, the European Union imported 150-180 billion cubic meters of gas from Russia – explained Xavier Rousseau, Senior Vice President of Strategy at SNAM. now dropped in 20-25 billion cubic meters. It is natural for the European Union to look for alternatives to have a healthy market with a balance that is then reflected in prices. Even in the transmission of energy, Gas retains a reserve role in the system, it provides an element of safety. And in the future, pipelines will be able to transport green molecules like hydrogen.

According to the EU Commission, Italy has to increase its internal gas transportation capacity To diversify energy imports and enhance security of supplies. Brussels indicated this in the specific recommendations dedicated to Italy on May 24. Ours in the package RePowerEu Unofficially presented in Brussels by the Minister for European Affairs Raphael Vito In recent weeks should have included such gas infrastructures Adriatic hump line (approximately an additional 10 billion cubic meters per year, which is needed to open supplies from south to north such as Algerian gas and with the modernization of the tap), and to raise the level of exports to northern Europe.

Gas remains a fossil resource And as long as the European Union needs it, The main trend remains decarbonization by 2050. This is one of the reasons it did so, in addition to its urgency to find alternative suppliers to Russia Growing interest in liquefied natural gas (LNG) as opposed to pipelined methane. According to new data from the Energy InstituteLast year, LNG imports to Europe exceeded pipeline gas imports for the first time.

The construction of new pipelines requires huge investments that must be covered in order to be paid off Long term contracts for a minimum period of 15-20 years: This means that whoever decides to build infrastructure must have someone who has been buying their gas at a certain price for at least twenty years. Eni’s managing director, Claudio Descalzi, explained it very well At the hearing in the Foreign Affairs Chamber of the Ad Hoc Committee on the EastMed Project on May 17. It comes with an extension The gas pipeline that should transport gas reserves from the eastern Mediterranean to EuropeAn offshore pipeline of about 1,900 kilometers from Israel to Greece, with a depth of up to 3,000 meters in some stretches, which It will connect to the offshore portion of the Poseidon pipeline from Greece to Italy (Otranto). The pipeline should also be able to transport hydrogen in the future. Descalzi did not comment on the project because Eni was not involved and stressed that in these cases it is up to whoever owns the gas – Israel, Cyprus and Egypt – to decide whether to choose a pipeline or gas return devices.

As inflows from Russia cease, there is renewed interest towards the eastern Mediterranean. An LNG ship from the Levant reaches the Adriatic Sea in three days while from Qatar, the second supplier to the European Union after the United States, it takes about twenty ships. but, The European Union has lost interest in EastMed. The first discoveries date back to 2009 with this field Tamar A year later with Leviathan by Israel, followed by Aphrodite off Cyprus in 2011 AH Back In 2015 in Egypt by a consortium also with Eni (the largest gas discovery ever in the Mediterranean).

When the waters of the Levant proved to be an important gas field area, European and American diplomats were optimistic that the coming bonanza could be an important step towards pacifying and stabilizing the region.provided that the countries concerned have reached an agreement. But this was not true. Egypt said special thanks above all to the Maxi Zohr field, invested in two liquefaction factors and is now in discussions with Israel to bring the surplus gas to Europe, even if the Egyptian need is very high and Cairo buys methane from Israel. Explorations continued in Cyprus waters but instead of being an element of peace, tensions increased between Cyprus and Greece on the one hand and Turkey on the other.

Gas deals didn’t do much, According to some experts from the International Crisis GroupTo reduce tensions between Israel and Lebanon, while not providing any political or economic benefits to the Palestinians. but Vali Nasr, director of the Johns Hopkins University School of International Politics and former adviser to President Obama on Middle East affairs, sees things a little differently.: He told us last April That one of the main successes in the Middle East of the current Biden administration was helping to negotiate an agreement between the Lebanese and Israeli governments regarding the delineation of borders and the exploitation of natural gas. This agreement would not have happened without the green light from Hezbollah and Iran. But it is highly dependent on stability between the Palestinians and Israel, Lebanon and Gaza. Hezbollah has threatened to strike platforms in the past. I’m not sure about that, but in doing so the group asserts that, If regional security fails, Europe’s energy security is also at risk.

In addition, the eastern Mediterranean region has limited export potential to the European Union Because the existing reserves are used to cover the internal needs of the countries in the region, the existing infrastructures are insufficient for export and the construction of the EastMed gas pipeline will take years. The EU’s attention is now focused more on North Africa: when the production of electricity from renewable sources reaches such a volume that it can be used to produce green hydrogen (from electrolysis), thenSoutH2 lanethe European backbone that crosses a 3,300 km network capable of transporting 4 million tons of green hydrogen per year, starting from Algeria.passing through Tunis, passing through the Strait of Sicily, Up to the Italian entry point Mazara del Vallo towards Austria and Germany. The project sees the signing of 4 European TSOs (Power Transmission Operators) and a joint venture: Snam, Austrians Tag and Gca (of which Snam is a shareholder), German Bayernets and Sea Corridor, a joint venture between Snam and Eni. Prime Minister Giorgia Meloni and German Chancellor Olaf Scholz also spoke about it, when he came to visit Rome. Last December, SoutH2 Corridor was nominated for a Project of Common Interest (PCI) in Europe.

The EastMed pipeline remains on the EU’s list of projects of common interest As Commissioner Simpson explainedbut he also added that The viability of the EastMed pipeline will depend on its commercial viability Based on future demand dynamics and its potential to contribute to the objectives of the European Green Deal. Thus his future is more uncertain than ever.

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