An Israeli Pipeline will transfer oil from the United Arab Emirates to Europe. The oil will be shipped from the Red Sea port of Eilat to the Mediterranean Sea along the Eilat Ashkelon Pipeline Company (EAPC), Reuters reported.
This announcement comes concurrently with the arrival of yet another delegation of UAE dignitaries in Israel. The delegation was met today by Prime Minister Binyamin Netanyahu at Ben Gurion International Airport.
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Their arrival comes just one day after the first Etihad Airways passenger plane landed in Israel.
Prime Minister Binyamin Netanyahu said after the Emirati delegation’s arrival, “Today we are making history. The enthusiasm for this peace agreement among our people is enormous. It’s real, it’s broad, it’s deep, and it reflects the potential that is realized today.”
It seems like almost every day now Israel is making history.
“I believe that more and more governments across the Middle East understand, as we do here today, that we’re so much better off working together, as friends,” added Netanyahu.
Israel and the UAE will establish a $3 billion regional development fund together with the US. They will also sign a visa waiver agreement making it easier for their citizens to visit each country. They will also be making tax deals.
As for the oil deal, once again Israel will be used as a conduit to ship oil from Asia to Europe. Until the Iranian Revolution in 1979, Iranian oil was shipped just this way, crossing through Israel to the Med.
This is easier and cheaper than having ships go through the Suez Canal. And the Canal cannot accommodate the larger oil tankers.
Israeli pipeline company EAPC said it had signed a preliminary deal to transport the oil from the UAE.
EAPC is owned by the Israeli government. It announced the signing of a binding memorandum of understanding with MED-RED Land Bridge, a company with Israeli and Emirati owners, in Abu Dhabi on Monday during a ceremony with visiting U.S. Treasury Secretary Steve Mnuchin.
“MED-RED is in advanced negotiations with major players in the West and in the East for long-term service agreements,” EAPC said.
“There is no doubt that this agreement is of high importance to the Israeli market, both economically and strategically, with joint investments extending a decade into the future,” said EAPC Chairman Erez Halfon.
Reuters reported that the deal could be worth $700-$800 million over several years and that the oil could begin to flow as early as the beginning of 2021.
EAPC, or Europe Asia Pipeline Co, operates its pipeline and deals in oil storage and the export and import of distillates.
MED-RED is owned by Petromal, a unit of Abu Dhabi-based National Holding, Israeli firm AF Entrepreneurship, and Lubber Line, an international group that focuses on infrastructure and energy.