– Commercial, Financial, Technical, Security, Legal, Reserve and Market Sights –
Greece, Southern Cyprus Management and Israel have signed a deal for a pipeline designed to move gas from the eastern Mediterranean to Europe. Actually, this signing ceremony is not a new attempt regarding with the due incoherent pipeline project. More than 3 years, the due sides have being coming together, declaring the same claims about their intentions to construct such a pipeline and gives smiling photos to the press but at last, nothing changes.
On the 2th of January 2020, the triple came together again. Still, they signed new documents and meaningless LoI’s to show that they will realize the proposed pipeline. But what changed today? Might such a project find a change to be able to be constructed?
To analyze the doability of gas pipeline projects, we have to check and evaluate many different sights. For example,
- the reserves and available volumes to be transported in due time periods,
- CAPEX and OPEX of such a pipeline,
- technical difficulties during construction and transportation,
- market demand capacity in due sale periods,
- market prices,
- other alternative gas sellers and their competitive volumes & sale price ranges
have to be analyzed as the first step of an international gas pipeline decision. In addition, in the further steps, more detailed engineering studies have to be completed. To take a FID (final investment decision) for such a pipeline project, all the binding gas sales agreements have to be signed with the due customers in the targeted market. If such steps cannot be realized, then it’s not coherent to say that the due pipeline will be constructed.
Let’s have a short outlook to the EastMed Gas Pipeline project from this regard.
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Yazar
