The planned 2,000 km (1,248 mile) pipeline aims to link gas fields off the coasts of Israel and Cyprus with Greece and possibly Italy, at a cost of up to €6 billion ($6.4 billion).

“This is an ambitious project, which as the Commission, we clearly support, as it will have a high value in terms of security of supply and diversification targets,” said European Climate and Energy Commissioner Miguel Arias Canete.

Israel has discovered more than 900 billion cubic metres (bcm) of gas offshore, with some studies pointing to another 2,200 bcm waiting to be tapped. Along with the European market, it is exploring options to export to Turkey, Egypt and Jordan.

Cyprus’ Aphrodite natural gas field holds an additional 128 bcm, and Cypriot waters are expected to hold more reserves.

After a meeting in Tel Aviv between energy ministers from Israel, Cyprus, Greece and Italy, Canete told reporters he believed the project would “meet all relevant requirements” to make financial commitment possible.

Israeli Energy Minister Yuval Steinitz said the pipeline could be completed in 2025. “But we will try to speed up and to shorten the timetable,” he said.

A feasibility study has been completed and the next few years would focus on “proper development activities”, with a final investment decision expected by 2020, said Elio Ruggeri, chief executive of IGI Poseidon, the project owners.

IGI Poseidon is a joint venture between Greece’s DEPA and Italian energy group Edison.

“Our estimate today is for the pipeline to cost 5 billion euros to (reach) the Greek system and 6 billion euros to (reach)the Italian system,” Ruggeri told Reuters.

The energy ministers said they would next meet in Cyprus in six months to further advance the project.

In the meantime, a Joint Declaration of the Minister of National Infrastructures, Energy and Water of Israel, Dr. Y. Steinitz (the host), the Minister of Energy of the Republic of Cyprus, Mr. Y. Lakkotrypis, the Minister of Energy and Environment of the Hellenic Republic, Mr. Stathakis, the Minister of Economic Development of the Italian Republic, Mr. C. Calenda, (all together referred to as the Parties) said:

“The Parties, as an outcome of the EastMed Pipeline Ministerial Summit held in Tel Aviv on April 3rd 2017, in the presence of EU Commissioner M. Canete, having acknowledged that:

• the recent gas discoveries in the Eastern Mediterranean Region, together with the potential for additional substantial discoveries, will likely transform the Region to a significant gas exporter to global gas markets;
• in particular, proven offshore gas reserves in Israeli and Cyprus’ EEZs are already sufficient to underpin multiple complementary export projects by pipeline and LNG;
• Europe, being the largest world gas importer, has the long lasting strategic goal to increase its security of supply by promoting gas projects enhancing diversification of import sources and routes;
• the EastMed Gas Pipeline Project – a European PCI project promoted by IGI Poseidon SA – allowing a direct connection between Eastern Mediterranean resources and Europe, represents a viable and strategic option for: i) gas producing States, as it will secure a direct long-term export route to European markets; ii) Europe, as it will contribute to strengthening EU’s security of supply, while promoting competition among gas suppliers;
• the results of the pre-feed study, co-financed by the EU Commission, are positive, and the project resulted as technically feasible and economically viable;

• The parties support the establishment of the Eastern Mediterranean as another corridor for gas supplies to Europe.
• The EastMed Pipeline Project, while complementing other export options under assessment, represents a strategic priority for exporting into Europe part of the current gas reserves of the Eastern Mediterranean Region;
• The Parties will support the East-Med Pipeline development activities and to this extent will support the IGI Poseidon application for the obtainment of EU funding under Connecting EuropeanFacility program;
• The Parties will also reinforce their cooperation, forming a quadri-lateral working group with the aim to monitor and support the development of the EastMed Pipeline Project and to identify terms of a necessary Intergovernmental Agreement to expedite project realization.
• The parties endorse the working group report dated 30 March 2017, regarding the East Med pipeline, submitted to Commissioner Canete.”