Israel and the United Arab Emirates (UAE) have begun negotiations over the Eilat-Ashkelon oil pipeline, which connects the Red Sea with the Mediterranean. Europe Asia Pipeline Co (EAPC) and UAE-based MED-RED Land Bridge Ltd signed a memorandum of cooperation in the transportation of raw materials.
The agreements became possible after the Jewish state and the Arabian monarchy struck a deal to normalize diplomatic relations, the EAPC said in a statement.
The EAPC is responsible for the Eilat-Ashkelon pipeline, which was built by Israel and Iran in 1960. Its capacity reaches 600 thousand barrels per day, and the volume of storage tanks is approaching the figure of almost 23 million barrels. It is to him, according to News, that the Emirates are likely to gain access.
Now, against the backdrop of Arab-Israeli normalization, a large space has opened up for energy deals between the Gulf countries and Israel – from investments in the Israeli pipeline itself and ending with its adaptation to transporting natural gas or connecting to Arabian lines. Former US Ambassador to Oman Mark Sievers says the Emirates now have “huge potential for all types of businesses.”