Promoting Cooperation in Natural Gas Development: Lessons from the Balkans and the Eastern Mediterranean

Abstract

This chapter discusses the importance of cooperation in the development of natural gas as a way of promoting energy security and de-carbonization in the Balkans and the Eastern Mediterranean (East Med). Particularly, this chapter examines how the same actors (Turkey and Greece) are cooperating in the Balkans, while being confrontational in East Med. The level of regional gas interconnectivity and the role of liquefied natural gas (LNG) trade enhancing regional energy security are key issues. The study explores several investment options in Balkans and East Med, discussing the potential role of major European powers alternatively promoting a type of Green Energy Plan (Green Schuman Plan) for both regions. The smaller Balkan market lowers investment incentives other than transit; by contrast, the East Med has a larger population and is a contested arena to extract resources from beneath the seabed, which adds to the benefits of both regions being considered together. Balancing the risk of geopolitical frictions, as well as economically committing to investments, raises uncertainty. This chapter discusses whether EU leaders can demonstrate leadership by initiating trustworthy policy entrepreneurship, reconciling all actors. Such reconciliation may increase solidarity and investments. Moreover, the analysis discusses pros and cons of some planned and existing pipeline-LNG projects. Finally, this chapter makes recommendations evaluating whether it would be better to compartmentalize policies in the different regions of the Balkans and the East Med or to combine them into one greater region. Lasting stability requires comprehensive deals covering EU and non-EU states. © The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer Nature Switzerland AG 2022.