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Israeli Foreign Minister Eli Cohen attends a conference at the European Parliament in Brussels, Belgium November 8, 2023. REUTERS/Yves Herman/File Photo
JERUSALEM, July 7 (Reuters) – Gulf countries’ dependence on oil shipments through the Strait of Hormuz could be significantly reduced by a pipeline linking the Gulf to Europe via Israel, Israel’s energy minister said, allowing them also to bypass Red Sea shipping disruptions.
Oil prices surged after the U.S. and Israel launched strikes on Iran on February 28 and Tehran effectively closed the strait. Prices have dropped since a U.S.-Iran ceasefire but fears remain that renewed tensions could close the waterway.
“The Gulf countries do not want to be dependent on either Iran or the Houthis (in Yemen) when it comes to their oil exports, which are their primary source of income,” Eli Cohen, Israel’s energy minister, told Reuters in an interview in Jerusalem.
“If you create a land route, you bypass both Iran and the Houthis… The best route is through the State of Israel.”
Yemen’s Iran-aligned Houthis have frequently attacked shipping in the Red Sea in recent years.
A pipeline through Israel has been mooted in the past, but the idea was never developed due to Middle East tensions.
SAUDI PLAN
Saudi Arabia is considering expanding the capacity of its crude oil pipeline to the western Red Sea coast, sources close to the matter said, enabling the kingdom and possibly neighbours to transport more oil without crossing the Strait of Hormuz.
Israel, Cohen said, already has existing infrastructure with a pipeline between its Red Sea city of Eilat to the southern Mediterranean port city of Ashkelon, but infrastructure would be needed to connect Arab countries if they were willing.
Cohen said he has suggested to the U.S. a 700-km-long pipeline that could run from Saudi Arabia to Eilat. From there, oil could pass through the Trans Israel Pipeline to Ashkelon, and on to oil tankers to Europe.
Cohen, a member of Israel’s security cabinet, praised the U.S. for its actions during the war with Iran, but said Israel may be forced into acting against Tehran alone should Iran advance its nuclear weapons programme. He added he hoped for a peace deal with Lebanon. Israel and Iran-backed Hezbollah agreed to a ceasefire last month.
OIL AND GAS
Israel on Monday launched a tender to search for more natural gas off its Mediterranean coast. Citing geological data, Cohen believes that oil is also present beneath the gas but that requires drilling deeper.
He added alternative energy is a key focus however, and that at least 30% of electricity production would come mainly from solar by 2030.
Reporting by Steven Scheer Editing by Alexandra Hudson
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