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Israel's Energy Minister touts oil pipeline bypassing Hormuz

Israel's Energy Minister said that the Gulf countries' dependency on oil shipments via the Strait of Hormuz would be'significantly reduced' by a pipeline connecting the Gulf to Europe via Israel. This would also allow them to avoid Red Sea shipping disruptions. After 'the U.S. launched strikes on Iran?on February 28, and Tehran effectively shut the strait, oil prices soared. Prices have fallen since a U.S. and Iran ceasefire, but there are still fears that tensions will rise again.

Eli Cohen, Israel’s energy minister, said in an interview at Jerusalem that the Gulf countries don't want to depend on Iran or Houthis in Yemen when it comes to oil exports.

"If you build a land route to bypass Iran and the Houthis,?you will do so... The State of Israel is the best option."

Yemen's Iran aligned Houthis has?frequently attacked ships in the Red Sea over the past years.

The idea of a pipeline through Israel was mooted before, but due to Middle East tensions it never became reality.

SAUDI PLAN Saudi Arabia considers expanding the capacity of its crude oil pipeline?to?the western Red Sea Coast, according to sources familiar with the matter. This would allow the kingdom, and perhaps neighbours, to transport more oil, without having to cross the Strait of Hormuz.

Cohen stated that Israel already had infrastructure in place with a pipe connecting its Red Sea port city Eilat with the southern Mediterranean city Ashkelon. However, infrastructure would need to be built to connect Arab countries, if they were willing. Cohen told the U.S. that he had proposed a 700 km-long pipeline from Saudi Arabia to Eilat. The oil would then be transported through the 'Trans Israel Pipeline' to Ashkelon and onto oil tankers bound for Europe. Cohen, who is a member of Israel's security cabinet, has praised the U.S. actions in the war against Iran. However, Cohen said that Israel could be forced to act alone if Iran advances its nuclear weapons program. He also expressed his hope for a 'peace deal' with Lebanon. Israel and Iran's Hezbollah reached a ceasefire agreement last month.

OIL AND GAS Israel launched on Monday a tender to search for more gas near its Mediterranean coast. Cohen, citing geological data believes that oil may also be present under the gas. However, this requires deeper drilling.

He said that alternative energy was a priority, but he also added that solar would account for at least 30% by 2030. (Reporting by Steven Scheer Editing by Alexandra Hudson)

(source: Reuters)