The Battle For Control Of East Mediterranean Energy
The history of oil and natural gas is marred by instability and conflict. The rise of the Eastern Mediterranean as a prolific energy region has increased existing tensions between certain littoral states while strengthening cooperation between others. The ratification of the charter concerning the Eastern Mediterranean Gas Forum (EMGF) further cements the importance of gas exporting countries in general and Egypt in particular.
In a political and economic sense, Cairo has succeeded in strengthening the country’s position as a major producer and exporter of gas while highlighting its role as an energy hub. Egypt’s large domestic market, significant production capacity, and strategic location make it an ideal candidate to host the EMGF’s headquarters in Cairo.
Besides the economic logic, Egypt’s growing population requires ever-larger volumes of raw materials to satisfy demand. Therefore, liquidity and access to additional sources are important to improve energy security. Cairo learned a lesson from the developments of 2014/2015 when domestically produced natural gas for export purposes was diverted to satisfy the exploding Egyptian demand. After becoming a net importer in 2015, the country’s two liquefaction facilities in Idku en Damietta were reconfigured for the regasification process of LNG.
The EMGF seeks to bring together the energy-rich countries of the Eastern Mediterranean through dialogue, layout policies, ensure safety and reliability to increase investments, and support growth. The charter is signed and ratified by the founding members Egypt, Cyprus, Greece, Israel, Italy, Jordan, Palestine, and France. The U.S. and the EU are observers. Noticeably, Turkey has been sidelined while two European countries who are geographically not part of the region, Italy and France, are members. It show’s the hard geopolitical reality of Ankara’s isolation.
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