Edison will make the final investment decision on the proposed EastMed-Poseidon gas pipeline by the end of 2023.

The EastMed-Poseidon pipeline, which includes a 1,300km offshore and 600km  onshore pipeline sections, would initially connect several gas fields offshore Israel to Italy and have an annual capacity of 10 billion cubic meters (bcm) of gas.  If Edison does go forward with the project it could be ready by 2027, the company says.

The pipeline would be fed by Israeli gas fields already in production and others under development. These are Leviathan, Tamar and the Tanin and Karish fields that have additional reserves to be developed.

These fields produce around 28 bcm a year, with about a third exported to Egypt and Jordan. Production is expected to climb in the coming years as current projects are expanded and any discoveries are brought online.

Russia’s invasion of Ukraine, skyrocketing oil and natural gas prices, as well as the EU’s efforts aiming for greater energy independence -- with the backing of the US -- are developments that have created new market conditions favoring the EastMed gas pipeline’s development.

The European Commission may be interested in partly funding the project, whose cost is estimated at around 6 billion euros ($6.4 billion), Edison said.