The project was one of the fruits of the Abraham Accords and was negotiated between the Europe Asia Pipeline Co. and UAE-based MED-RED Land Bridge Ltd. The companies signed a Memorandum of Understanding (MOU) in October 2020.
When first announced the project was reported by Reuters as “one of the most significant partnerships to emerge” since the Abraham Accords were signed, potentially worth $700-$800 million over several years.
However, Israel’s Environmental Protection Ministry was not involved in the negotiations, Kan, Israel’s public broadcaster, revealed in May, noting a ministry report warning about the deteriorating condition of the pipeline.
In 2014, a breach in the pipeline led to an oil spill in Israel’s Evrona Nature Reserve.
UAE officials have warned a cancellation of the pipeline would negatively impact its relations with Israel.
“We’re talking about an agreement that was signed after all the inspections were made, and its cancellation is certainly likely to gnaw away at the relations that have been formed with the government of Israel and commercial firms in Israel,” said UAE officials, according to Israel Hayom.
