Hochstein made his comments in response to questions during a joint subcommittee hearing by the US House Committee on Foreign Affairs’ Subcommittee on the Middle East and North Africa and the Committee on Science, Space and Technology’s Subcommittee on Energy entitled ‘Eastern Mediterranean Energy: Challenges and Opportunities for US Regional Priorities’.
Moreover Hochstein expressed his country’s support to the third licensing round for offshore exploration in Cyprus’ Exclusive Economic Zone.
He added that he is in contact with the Cypriot Energy Minister Giorgos Lakkotrypis and other Cypriot Ministers on a weekly basis to see how the US is in a position to support Cyprus.
In his speech, Hochstein said that discoveries offshore Cyprus, Israel, Egypt, and potentially Lebanon have already redefined regional relationships and will continue to be a catalyst for increased economic and political cooperation through interconnection and integration.
For example, many credit regional energy development for the deepening of the relationship between Israel and Cyprus, he added, noting that the successful exploration, production, and export of the natural gas resources in the Eastern Mediterranean will require exactly the political cooperation and economic integration that the United States has long supportedin the region.
“This remains a top foreign policy priority for the United States, which is why I have spent a significant amount of my time devoted to these opportunities, and why engagement by Vice President Biden and Secretary Kerry on these issues has been so robust,” Hochstein stressed.
He expressed the belief that the Eastern Mediterranean remains an underexplored and underdeveloped area, noting that he expects that significant discoveries will continue to be made there. However, the market is still looking for validation that historic political differences will not get in the way of investment and development, he added.
Hochstein said that “clearly energy will not solve the political differences in the region but it can provide incentives to accelerate political accommodation and encourage compromise.”
He noted that the future that he sees for the region includes new and old pipelines connecting Israel’s offshore resources to Jordan, Egypt, Turkey, and the Palestinian Authority, and Cypriot gas exports to Turkey and/or Egypt, and allowing Egypt to satisfy its own power needs and export surpluses to international markets via existing, but now idle, LNG terminals.
He added that new resources will allow Turkey to diversify its heavy dependence on a small number of suppliers and use its extensive pipeline network to reach Europe as well. “The success of all these plans however hinges on cooperation. Countries will save billions if they share infrastructure and market access. If they don’t share those resources, most of the gas will have to stay in the ground,” he noted.
Source: InCyprus
