Monday, April 3, 2017

Ambitious East Med pipeline plans unveiled in Tel Aviv - IN CYPRUS / CYPRUS WEEKLY

April 3, 2017

Cyprus, Greece, Israel and Italy on Monday presented their plan for construction of a 1,300-kilometer undersea gas pipeline, the longest in the world.

The energy ministries of Israel, Cyprus, Greece, and Italy have over the past six months been conducting frequent talks with the European Commission DG Energy about exporting gas from Israel to Europe.

Israel, meanwhile, is also understood to still be considering a 500km pipeline agreement with Turkey which will involve passing through Cyprus’ Exclusive Economic Zone (EEZ).

Separately, the US Deputy Assistant Secretary for Energy Diplomacy Robin Dunnigan, is expected to visit Cyprus this week to attend the signing of an agreement between the Republic of Cyprus and the ExxonMobil-Qatar Petroleum consortium as part of the exploitation of natural gas reserves in Cyprus’ EEZ.

L to R, Lakkotrypis, Calenda, Steinitz, Cañete, Stathakis 
European Commissioner for Climate Action and Energy Miguel Arias Cañete, on Monday attended an event in Tel Aviv with Israel’s Minister of National Infrastructure, Energy, and Water Resources Yuval Steinitz, Cyprus’ Minister of Commerce George Lakkotrypis, Italian Minister of Economic Development Carlo Calenda, and Greek Energy and Environment Minister Giorgos Stathakis.

According to the Israel Ministry of National Infrastructure, Energy, and Water Resources, the purpose of Monday’s event is the presentation of the international partnership initiated by Israel for construction of a 1,300-kilometer undersea gas pipeline, the longest in the world.

The pipeline will start from the area of the Leviathan reservoir, passing through the Cypriot gas reservoirs, Cyprus, Crete, Greece, and from there to Italy. An initial survey estimated the cost of the undersea segment of a pipeline with an annual capacity of 12-16 BCM at €5.34 billion.

Yiorgos Lakkotrypis, Cyprus
As in the case of the Nord Stream, it is possible that if additional large scale gas fields are discovered in Israel and Cyprus, it will be worthwhile laying two parallel pipelines capable of transporting 30 BCM of gas a year.

The European Commission DG Energy recently announced it was withdrawing its opposition to laying two more pipelines in the Baltic Sea between Russia and Germany with an annual capacity of 55 BCM, at an estimated construction cost of €9.9 billion.

The project, called Nord Stream 2, is strongly opposed by Poland, Ukraine, and the Baltic Republics.