Israel’s Europe Asia Pipeline Co (EAPC) on Tuesday said it had inked a preliminary agreement to transport oil from the UAE to Europe via its Eilat-Ashkelon Pipeline. The state-owned pipeline company signed the binding MoU with MED-RED Land Bridge, in Abu Dhabi on October 18. If realised, the deal would be the most significant since both nations signed the Abraham Accords Peace Agreement to normalise relationships in August.
The partners did not disclose financial details on the contract, but analysts estimated it could be worth $700 million-$800 million over the next couple of years. Supply is expected to flow starting in 2021, with expected annual transferred quantities of tens of millions of tons. Both companies also hope to use their “land bridge” to transport oil, which offers a quicker and cheaper alternative than shipping oil via the Suez Canal.
