by F. William Engdahl, New Eastern Outlook:
Israel plans to construct the world’s longest underwater gas pipeline together with Cyprus and Greece to carry Eastern Mediterranean gas on to Italy and the EU southern states. US Secretary of State Mike Pompeo has just endorsed the project. It will run smack up against a competing Turkish-Russian gas pipeline, Turk Stream, against a potential Qatari-Iran-Syria pipeline, as well as de facto undercut the Washington attempt to get more US LNG gas to the EU to reduce Russian dependency.
The project, under discussion for several years since Israel discovered major gas reserves in the offshore Leviathan Field, is known as the East Med Pipeline Project. Natural gas will flow from Leviathan via Cyprus, Crete and Greece to reach its terminal at Otranto on the southeast heel of Italy. Plans call for a pipeline of 2,100 kilometers running three kilometers deep under the Mediterranean. Cost is estimated at $7 billion with a five year construction period.
On March 26, the Deputy Chairman for Russia’s Gazprom energy company announced that they are ready to begin settling oil sale account in currencies other than the dollar, making them one of the first primary oil company (outside of sovereign determination) to sell their products in a currency other than the dollar.