Blending up to 20% hydrogen into existing natural gas pipelines in the eastern Mediterranean region is “technically feasible” and can serve as an interim solution while dedicated hydrogen infrastructure is developed, according to a new report from international industry body Eastern Mediterranean Gas Forum and non-profit body, International Gas Union.
Some terminals could be adapted to handle liquefied hydrogen or ammonia, allowing countries to leverage their existing LNG infrastructure to access international hydrogen markets, particularly in Europe, where demand for low-carbon hydrogen is expected to grow significantly.
The forum, representing Cyprus, Egypt, Israel, France, Greece, Italy, Jordan and Palestinian territories, believes the region has the potential to evolve into a global energy hub, supplying gas to European and international markets while also advancing sustainable energy practices.
But the report notes how the geopolitical complexity of the region necessitates sustained dialogue to ensure the smooth development and regional integration of gas resources.
“Investment in cleaner gas technologies, coupled with regulatory frameworks that encourage private sector participation, will be essential for long-term success,” it states.
“Furthermore, integrating hydrogen production and renewable energy projects into the existing natural gas infrastructure can offer a more viable and cost-effective path toward achieving broader energy transition goals.”
CCS and CCUS technologies hold significant potential to drive “transformative change” by addressing emissions from offshore natural gas production while geological formations, such as depleted natural gas reservoirs, are well-suited for CO2 storage, utilising current infrastructure.
Countries target hydrogen and LNG
In 2024, Egypt introduced its National Low-Carbon Hydrogen Strategy, with the aim of diversifying its energy sources and further shift towards a low-carbon economy.
The country is targeting an annual output of 3.2 million tonnes under the most ambitious scenario (‘green scenario’), with an increase to 9.2 million tonnes by 2040.
The goal is to expand the use of green hydrogen and ammonia in various industrial applications, such as the production of iron, steel, fertilisers, and chemicals, to decrease greenhouse gas emissions significantly.
Egypt has also established itself as a key player in the global LNG market, with operational liquefaction and export terminals at Idku and Damietta.
Oil technology and engineering firm SLB, partnering with Shell, Egyptian Natural Gas Holding Company (EGAS), and Egypt Upstream Gateway, and with support from the Center for Energy Transition of Aberdeen University, recently completed the industry’s first screening study for offshore CO2 storage in the Nile Delta, evaluating and ranking 16 potential locations.
SLB has also identified potential carbon storage sites for Cherion and its partners – Capricorn Energy and Bapetco.
Greece’s Final Updated National Energy and Climate Plan (NECP) 2021–2030, submitted in 2025, sets a target of 1.2 TWh of annual green hydrogen production by 2030, primarily for synthetic fuel manufacturing and pilot projects such as 50 hydrogen-powered buses in Athens and Thessaloniki.
With a goal of 90% renewable electricity penetration by 2035, the country ensures that hydrogen produced via grid electricity will be classified as green.
Given Greece’s abundant renewable resources, the plan does not foresee the need for hydrogen imports or an extensive transmission network, instead emphasising localised production near industrial users like refineries.
Additionally, Greece aims to develop a dedicated hydrogen pipeline network linked to the European Hydrogen Backbone, positioning itself as a potential exporter.
The country has an operating LNG terminal on the island of Revithoussa, while another floating storage and regasification unit (FSRU) began operations in Alexandroupolis in October 2024.
The strategy acknowledges uncertainties in hydrogen demand, focusing deployment on hard-to-electrify sectors such as heavy road transport, shipping, and aviation, with reassessments as technologies evolve.
Cyprus is a relative newcomer to the natural gas sector compared with Israel and Egypt but is rapidly positioning itself as an emerging player, the report adds.
Eni and TotalEnergies have signed an agreement with Egypt and Cyprus relating to the development of the Cronos gas field. The agreement provides a framework allowing the Cronos gas to be processed in the existing Zohr facilities and then liquefied in the Damietta LNG plant in Egypt, for export to European markets.
