pipeline

The European Union Should Help Fund An Oil Pipeline from the Gulf to The Mediterranean

While the United States enjoys sufficient energy resources, thanks to shale oil, the European Union does not. To assure itself of the energy supplies in the Gulf that the European Union needs, the EU should consider assisting the Gulf States in the construction and operations of the pipeline. 

Building a large-scale, completely underground oil pipeline system from the Persian/Arabian Gulf oil fields to the Mediterranean Sea is estimated to cost between $40 billion and $60 billion and would take 5 to 7 years to complete. The exact metrics depend heavily on the chosen route, political alignment across transit countries, and the required total throughput capacity. 

Breakdown of Total Costs 

Modern mega-pipeline engineering over long desert and mountain distances faces massive cost drivers: 

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· Construction & Trenching ($18B – $25B): Burying multiple large-diameter (e.g., 42 to 48-inch) pipelines entirely underground requires extensive trenching, rock blasting, and specialized anti-corrosion coatings. Global benchmarks show that large-scale overland pipelines average $8 million to $12 million per mile, but full underground burial heavily drives up labor and machinery costs.

· Pumping Stations & Terminals ($8B – $12B): Moving millions of barrels of crude daily across hundreds of miles requires heavily fortified pumping stations every 60–100 miles, alongside massive new storage and loading terminals on the Mediterranean coast. 

· Geopolitical & Geotechnical Risk Premium ($7B – $10B): Multi-billion dollar  contingencies are standard to absorb project snags, material inflation, and  complex international legal/right-of-way frameworks. 

· Security Infrastructure ($5B – $10B): Given the vulnerability of cross-border energy corridors, modern estimates for Gulf bypass networks integrate specialized defensive technologies (like automated drone surveillance or surface-to-air missile defenses) to protect critical facilities. 

Construction Timeline and Stages 

· Megaprojects of this length are restricted by a sequential project lifecycle that cannot easily be accelerated simultaneously: 

· Diplomacy & Right-of-Way (Years 1–2): Securing cross-border transit legal treaties (e.g., routing through Saudi Arabia, Jordan, Israel, or Syria/Turkey) and finalizing environmental impact assessments. 

· Material Procurement & Logistics (Years 2–3): Manufacturing and transporting millions of tons of high-grade steel line pipe and heavy industrial pumps. 

· Civil Trenching & Laying (Years 3–6): Heavy execution phase. Crews can typically lay roughly 1 to 2 miles of pipe per day per construction spread.

Multiple spreads working simultaneously across different geographic zones are required to finish within a 3-to-4-year active construction window.  · Testing & Commissioning (Year 7): Hydrostatic pressure testing of the lines to ensure underground integrity, followed by line fill and gradual commercial scale-up 

Proposed Alternative Routes 

Producers in the region actively advance or evaluate different variants of this corridor to bypass maritime chokepoints like the Strait of Hormuz: 

· The Mesopotamian Corridor (Iraq/Syria route): A ~1,500 km route linking the southern oil fields of Basra to Mediterranean ports like Baniyas, Syria.  While geographically direct, it remains vulnerable to high regional instability. 

· The Trans-Arabian Upgrades: Adapting or running parallel lines to existing corridors (like the Saudi East-West Petroline, which travels 1,200 km to the Red Sea) and extending them northward to Mediterranean Sea terminals. 

How Standard Micro-Tunneling Works for Utilities: When pipeline engineers hit a mountain or an environmental zone where they cannot dig an open trench, they use Micro-Tunnel Boring Machines (MTBMs) or Horizontal Directional Drilling (HDD). These systems are highly specialized to avoid the exact problems of passenger-sized tunnels: 

· Sized to the Pipe: Unlike a 12-foot-wide transit tunnel, an MTBM is built to the exact outer diameter of the oil pipe (typically 4 to 5 feet for a 48-inch line).  This means crews excavate 90% less rock and dirt.

· Pipe-Jacking Method: Instead of laying concrete tunnel walls and then trying to slide a heavy steel pipe inside later, MTBMs use a process called “pipe jacking.” Powerful hydraulic rams at the surface push the actual steel oil pipe directly behind the drilling head as it advances into the rock. 

· No Open Voids: Because the pipeline fits perfectly into the drilled hole, there is no empty space left around it. The pipe is completely surrounded by solid rock or stabilizing grout, eliminating the risk of dangerous, explosive gas pockets building up in an open tunnel. 

The Mountain Ranges the Route Must Clear 

· To get from the Gulf fields (like Ghawar in Saudi Arabia or Basra in Iraq) to the Mediterranean, a pipeline must breach the Syrian Desert and cross a series of rugged, geologically active mountain walls running parallel to the Mediterranean coast: 

· The Jordan Rift Valley & Dead Sea Fault: Before hitting the mountains, the pipeline must drop down into one of the lowest, most seismically active valleys on Earth (falling hundreds of feet below sea level) and then immediately climb back out. 

· The Judean Hills & Golan Heights: Depending on the exact coastal terminal, the line must climb over rugged limestone ridges ranging from 3,000 to 4,000 feet high.

· The Anti-Lebanon & Mount Lebanon Ranges: If the route takes a more northern path toward Syria or Lebanon, it faces severe alpine conditions with peaks soaring between 9,000 and 10,000 feet. 

The Geopolitical Treaties Required 

Building a multi-billion dollar piece of energy infrastructure across national borders requires an intricate web of international legal frameworks. Historically, cross-border pipelines are governed by Host Government Agreements (HGAs) and Intergovernmental Agreements (IGAs). 

To make a Gulf-to-Mediterranean pipeline a reality, several unprecedented breakthroughs would be needed: 

· Transit Fees and Tariffs: The countries hosting the pipeline but not producing the oil (like Jordan or Syria) must negotiate “transit fees.” These are typically paid in cents per barrel of oil that passes through their territory, providing them with billions in long-term revenue. 

To make a Gulf-to-Mediterranean pipeline a reality, several unprecedented breakthroughs would be needed: 

· Transit Fees and Tariffs: The countries hosting the pipeline but not producing the oil (like Jordan or Syria) must negotiate “transit fees.” These are typically paid in cents per barrel of oil that passes through their territory, providing them with billions in long-term revenue. 

· The “Right of Way” Guarantee: Sovereign nations must sign legally binding treaties promising that they will not shut off or seize the pipeline during diplomatic disputes. A famous historical warning is the original Trans-Arabian Pipeline (Tapline), which was repeatedly disrupted, sabotaged, and eventually shut down permanently due to border conflicts and transit fee arguments between Saudi Arabia, Jordan, Syria, and Lebanon. 

· The Abraham Accords Framework: If the pipeline takes the most geologically direct southern route to terminals in Israel (like Ashkelon or Haifa), it relies heavily on the long-term stability and expansion of the Abraham Accords. Saudi Arabia and Israel would need formalized economic treaties to protect a joint energy corridor from regional political shifts. 

· Joint Security Commands: Because a pipeline stretching thousands of miles across the Middle East is a prime target for non-state actors and drone strikes, treaties must establish a unified security framework. This allows military and intelligence sharing across borders to patrol the pipeline corridor with automated drone networks and satellite monitoring. 

Environmental Safeguards for Freshwater Aquifers The Jordan Valley and the surrounding mountain ridges contain critical freshwater sources, such as the Mountain Aquifer, which supply drinking water to millions of people in Israel, Palestine, and Jordan. A single major crude oil leak could seep into the porous limestone and permanently poison these non-renewable water reserves.  To mitigate this, engineers deploy an array of specialized defenses: 

· Pipe-in-Pipe Technology (Double Containment): In high-consequence water zones, crews do not use a standard single-wall pipe. They build a “pipe-in-pipe” system where the main 48-inch crude oil line sits inside a larger, secondary outer steel casing. The vacuum gap between the two pipes is monitored 24/7 for pressure changes; if the inner pipe leaks, the outer pipe captures the oil before it touches the soil. 

· Fiber-Optic Acoustic Leak Detection: Continuous fiber-optic cables are buried directly alongside the pipeline. These cables can “hear” the micro-acoustic vibrations and sudden temperature drops caused by a pinhole leak. This allows operators to pinpoint the exact location of a breach within meters in less than a minute. 

· Emergency Remote Isolation Valves: The pipeline is segmented by heavy-duty, automated shut-off valves. In flat areas, these are placed every 20 miles. In critical aquifer zones or steep mountain drops, they are placed every 1 to 2 miles. If the control center detects a pressure drop, these valves slam shut automatically via satellite command to trap the oil inside a small, isolated section, preventing millions of gallons from draining into the environment. 

Daily Revenue for Transit Countries 

· Transit countries like Jordan or Syria do not own the oil, but they make massive profits simply by letting it cross their land. These fees are negotiated as a tariff—a fixed dollar amount charged per barrel of oil moved. 

· Assuming a modern mega-pipeline with a capacity of 2 million barrels per day (bpd) and a standard international transit tariff of $0.60 to $1.20 per barrel, we can calculate the massive financial impact on a host country’s budget:

DAILY TRANSIT REVENUE ESTIMATE │ 

Pipeline Throughput Capacity │ 2,000,000 Barrels / Day 

Average transit tariff rate: $0.90 USD per barrel 

Daily Revenue Generated │ $1,800,000 USD / Day 

Annual Revenue Generated │ $657,000,000 USD / Year 

The Broader Economic Impact 

· Direct Budget Injection: For a developing economy like Jordan, an extra $650M+ per year in pure cash represents a massive boost to their national budget, easily funding large-scale public infrastructure or health programs. 

· In-Kind Energy Off-Takes: Rather than taking 100% of the payment in cash, transit treaties often allow host countries to take a portion of the payment in free crude oil. This allows them to supply their local refineries and secure cheap domestic gasoline without relying on volatile global energy imports. 

· Long-Term Economic Leverage: Hosting the pipeline transforms these non-producing nations into critical gatekeepers for global energy markets, giving them significant diplomatic leverage when negotiating trade and security deals with major global superpowers. 

Maritime Shipping Insurance & The Strait of Hormuz Bypass  The Strait of Hormuz is the world’s most sensitive maritime energy chokepoint. During periods of regional conflict, Lloyd’s of London and global marine underwriters designate

the Persian Gulf as a listed area (high-risk zone), triggering drastic shifts in shipping economics. 

· War Risk Premiums: When regional tensions spike, war risk insurance premiums for oil tankers navigating the Strait can surge from a baseline of 0.025% of the ship’s value to over 0.25% to 0.5% per voyage. For a modern $100 million Very Large Crude Carrier (VLCC), this adds an extra $250,000 to $500,000 in insurance costs for a single transit. 

· Bypassing the Chokepoint: Moving oil via the underground pipeline directly to the Mediterranean entirely eliminates the need for tankers to enter the Persian Gulf. Tankers load at secure Mediterranean ports (like Ashkelon, Haifa, or Baniyas) within standard, lower-risk European maritime zones. 

· Shipping Time Savings: Loading in the Mediterranean slashes the sailing distance to European and North American refineries by roughly 3,500 to 4,500 miles compared to sailing all the way around Africa or paying steep transit fees to use the Suez Canal. This reduces freight operating costs and completely erases the risk of a regional conflict stranding a fleet inside the Gulf. 

Naval Defense Infrastructure at the Mediterranean Terminal 

Because the new Mediterranean pipeline terminal would handle up to 2 million barrels of oil per day, it becomes a high-value strategic asset. Protecting it requires a multi-layered naval defense perimeter extending miles out to sea:

· Anti-Drone & Anti-Torpedo Netting: Heavy, underwater physical barriers and sensor nets are deployed around the loading buoys and piers to catch or detonate incoming unmanned underwater vehicles (UUVs) or loitering aquatic explosive drones. 

· Phalanx CIWS & Missile Batteries: The onshore terminal facility integrates close-in weapon systems (CIWS) and surface-to-air missile batteries (like Iron Dome or Barak MX systems) to intercept incoming rocket, drone, or anti-ship missile strikes launched from sea or land. 

· Active Naval Patrols: Host nations deploy continuous maritime security cordons using fast attack craft, sonar-equipped corvettes, and aerial reconnaissance drones to enforce a strict 5-to-10 mile exclusion zone around the offshore loading terminals, vetting every incoming commercial vessel. 

Conclusions 

With political tensions between the United States and the European Union increasing and confidence in the United States’ foreign policy falling, Europe needs to find and secure an energy source that is not dependent on either the United States or Russia.  An agreement, both economic and political, would in the long run make Europe independent from energy sources from either country. The idea of an overland pipeline to the Mediterranean is both economically and engineeringly possible. What is needed is the political will to make it happen.

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Egypt’s IPO Pipeline Grows as Cairo Courts Private Capital

Cairo accelerates state asset sales under an IMF plan, targeting up to four major listings by summer 2027.

This article appears in the July/August issue of Global Finance Magazine.

Egypt, Africa’s second-largest economy after South Africa, plans to list up to four state-owned companies on the Egyptian Exchange (EGX), the continent’s largest stock exchange by the number of listed companies, within the next 12 months.

The June 5 announcement is part of Cairo’s $8 billion International Monetary Fund (IMF) reform program and the government’s State Ownership Policy (SOP).

The planned transactions include the sale of a 20% stake in state-owned Misr Life Insurance, which is expected to raise about 14 billion Egyptian pounds (about $277 million). Investment and Foreign Trade Minister Hassan El Khatib said the government also expects more than seven public offerings — including private-sector companies — to reach the market within the next year.

“Over the next 12 months, the priority will be to make it easier for businesses to operate, raise capital, and complete mergers and acquisitions,” El Khatib told Reuters during a London visit.

In October 2024, the government floated shares in United Bank, marking the first state-owned bank listing in years. Since then, the EGX has approved the temporary listing of six additional state-owned enterprises, including Sinai Manganese Company and El Nasr Housing and Development. Officials are also preparing about 10 state-owned petroleum companies, along with firms in other strategic sectors, for future listings.

The drive toward privatization follows reforms introduced in March 2024, when Egypt adopted a flexible exchange-rate regime and allowed the Egyptian pound to float freely, ending the parallel foreign exchange market. In its February review, the IMF said inflation had fallen from a peak of 38% in September 2023 to the low-double-digit range, while Egypt’s net international reserves had risen to about $53 billion, reflecting stronger external buffers.

The reform program targets one of the most state-dominated economies in the Middle East and Africa. According to the IMF, Egypt’s state-owned enterprises account for assets equivalent to about half of the country’s gross domestic product. The government directly owns or controls more than 300 commercial enterprises across sectors, including banking, energy, manufacturing, transport, and telecommunications. The SOP came about in 2023. Subsequent legislative reforms include Law No. 170 of 2025, which established a central framework for the divestment of state assets.

Charles Wachira is a contributing writer based in Kenya.

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Ukrainian citizen charged with Nord Stream gas pipeline attack in 2022

July 2 (UPI) — A Ukrainian national has been charged in Germany in connection with the 2022 bombing of the Nord Stream pipelines bringing natural gas 760 miles via the Baltic Sea from northwestern Russia to Lubmin in northeastern Germany.

Authorities allege the suspect, named only as Serhii K, led and coordinated an operation with seven others to sabotage the $17 billion gas projects on Sept. 26, 2022, according to reports in German media Wednesday. He is also charged with attacking and destroying civilian energy infrastructure and causing an explosion.

Prosecutors said he is the same individual who was detained by Italian authorities in August and extradited to Germany in November.

He denies all wrongdoing.

German prosecutors further allege he was a serving Ukrainian officer and that he and the others, who were also members of the Ukraine military, were “acting on behalf of state bodies in Ukraine” to deprive Moscow of energy revenues from the pipelines to fund its war against Ukraine.

The finger has variously been pointed at Ukraine, along with Britain and the United States, and even Russian itself, but the Federal Public Prosecutor General’s claim the attack was ordered by Kyiv was highly significant because Germany is one of Ukraine’s staunchest allies, providing military aid and political support.

Kyiv , which has always denied involvement, did not immediately respond to the accusation.

Three of the four pipelines were ruptured east of the Danish island of Bornholm in the attack. Nord Stream 1 was shut down at the time due to technical problems.

Nord Stream 2, a subsidiary of the Russian state-run energy giant Gazprom, was completed in September 2021 after being plagued problems including legal wrangles and U.S. sanctions targeting companies party to the project.

However, it never opened because Germany cancelled its certification process shortly before Russia’s full-scale invasion of Ukraine in February 2022 as it moved to wean itself from its reliance on Russian gas.

The project, which would have doubled Nord Stream’s gas capacity to 110 billion cubic meters annually — said by the company to be sufficient to supply to 26 million homes in Europe and critical to efforts to guarantee the European Union’s “security of supply of natural gas.”

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Xi, Putin resurrect Siberia gas pipeline talks but fail to reach deal

Despite a raft of unrelated agreements resulting from talks between President Vladimir Putin (L) and Chinese President Xi Jinping on Wednesday, the pair failed to make progress on a long-planned 1,615 mile second pipeline from Siberia to supply China with natural gas. Photo by Alexander Kazakov/EPA

May 20 (UPI) — Talks between Russian President Vladimir Putin and Chinese President Xi Jinping on Wednesday failed to make progress on a long-planned 1,615-mile pipeline to supply China with an annual 50 billion cubic meters of natural gas from Russia’s Yamal field in Siberia.

The Power of Siberia 2 project negotiations on the final day of Putin’s two-day state visit to Beijing stalled due to differences over the timetable, financing and cost of the gas with Beijing holding out for a price of around 12-13 cents per cubic meter, in line with the cost in the domestic Russian market.

Moscow and Beijing signed a binding contract to develop the project during Putin’s last visit to China in September but left the details to be ironed out down the line.

Russia wants a similar deal to that for Power of Siberia 1, which experts projected would mean the price of the gas would be at least double the 12-13 cents figure.

The talks yielded 20 other trade and technology agreements and while a joint leaders’ statement talked of boosting their “comprehensive partnership” and shared vision “for a multipolar world and a new type of international relations,” the summit produced no breakthroughs of any great significance.

Analysts said the power imbalance in the Sino-Russia relationship — one where Russia needed China more than China needed Russia — was on full display during Putin’s visit.

Putin said that as one of China’s largest energy suppliers, Russia was ready to “reliably” meet fast-growing Chinese demand for oil, gas and coal.

“Russia and China are actively cooperating in the energy sector. Our country is one of the largest exporters of oil, natural gas, including liquefied gas, and coal to China. We are, of course, ready to continue to reliably ensure uninterrupted supplies of all these fuels to the rapidly growing Chinese market,” Putin said in comments that made no reference to the pipeline.

Kremlin spokesman Dmitry Peskov said the sides had “reached an understanding on the project’s main parameters” in Wednesday’s talks but that “some nuances remain to be ironed out.”

Beijing, which is looking to Russia to ameliorate the energy shock from the severe disruption to its supplies of oil and LNG caused by the Iran war and the closure of the Hormuz Strait, has already imported 35% more Russian oil in the January to March quarter than in the same period in 2025.

“Both China and Russia need each other, but Russia clearly needs China more than before at the global stage. Given today’s international environment, deep co-operation with China is extremely important for Russia in dealing with many of its current challenges,” Zheng Runyu, of the Centre for Russian Studies in Shanghai, told the BBC.

Wreathes are seen amongst the statues at the Korean War Veterans Memorial during Memorial Day weekend in Washington on May 27, 2023. Memorial Day, which honors U.S. military personnel who died while in service, is held on the last Monday of May. Photo by Bonnie Cash/UPI | License Photo

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