EU Considers Funding Oil Pipeline from Gulf to Mediterranean
The EU is exploring financial support for a $40-$60 billion pipeline connecting Gulf oil fields to the Mediterranean. This initiative could enhance energy security for Europe, reducing reliance on US and Russian supplies.
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The proposed underground oil pipeline from the Persian Gulf to the Mediterranean is projected to cost between $40 billion and $60 billion, with a construction timeline of 5 to 7 years. Key cost components include $18-$25 billion for construction and trenching, $8-$12 billion for pumping stations and terminals, and $7-$10 billion for geopolitical risk premiums.
The project faces significant logistical challenges, including securing cross-border treaties and environmental assessments. Moreover, countries like Jordan and Syria could generate substantial revenue from transit fees—potentially over $650 million annually. Political stability and international agreements will be crucial for the project's success, given the complex geopolitical landscape.
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