Israeli pipeline company EAPC said it had signed a preliminary deal to help transport oil from the United Arab Emirates to Europe via a pipeline that connects the Red Sea city of Eilat and the Mediterranean port of Ashkelon.
If finalised, the deal will be one of the most significant partnerships to emerge so far since Israel and the United Arab Emirates normalised relations.
State-owned EAPC said it signed a binding memorandum of understanding with MED-RED Land Bridge, a company with Israeli and Emirati owners, in Abu Dhabi on Monday during a ceremony with visiting U.S. Treasury Secretary Steve Mnuchin.
Along with UAE oil, the partners hope to use their “land bridge”, which saves time, fuel and costs versus crossing the Suez Canal, to transport oil back and forth between other countries. It could provide quicker access for consumers in Asia to oil produced in the Mediterranean and Black Sea regions.
“MED-RED is in advanced negotiations with major players in the West and in the East for long-term service agreements,” EAPC said.