Prospects for Cyprus' natural gas 'promising', experts at Energy Symposium say
CNA - NICOSIA 8/12/2015 17:09
The challenges and opportunities in the energy sector for Cyprus were the focus of a discussion among experts during the 4th Energy Symposium, held on Tuesday in Nicosia.
The demand and the supply of natural gas in Egypt will continue to increase and Egypt continues to be very interested in the Cypriot natural gas, said Dimitris Fessas, Manager at Cyprus Hydrocarbons Company. He added that a few weeks after the discovery of Zhor gas field, in the Egyptian offshore, there was a reassessment of the new situation, but it became apparent that Cyprus' strategy still remains on the table.
He added that Egypt`s plan on Zhor is to meet the needs of the domestic market, noting that the liquefaction terminals of BG and those at the city of Damietta are potential buyers of Cypriot gas.
Fessas said that there are potential buyers who resell domestically and explained that the final agreement will depend on various parameters such as quantities, prices and guarantees given.
According to Fessas, the discovery of Zhor in Egypt can be considered competition as well as an opportunity for synergies in the region. He said the joint development of deposits will create economies of scale, reduce costs and increase profits.
Greece is willing to act as a transit country for Cypriot and Israeli natural gas, on its way to Europe, Greece`s Minister of Environment and Energy Panos Skourletis has noted. In a written address that was read at the symposium, Skourletis notes that this can be done either through tankers, or directly through the EastMed pipeline, yet to be constructed.
Skourletis highlighted Greece`s ambition to become an energy hub in South East Europe and contribute to the continent`s energy security. He remarked that there is particular mobility as of late concerning LNG, with an aim to enhance the security for natural gas in the region.
Athens seeks to play a central role in the region, due to a combination of gas pipelines running through the country, the Greek Minister said, making particular reference to IGB connecting Bulgaria with Greece, the natural gas hub in northern Greece and the designs for a new Russian gas pipeline, expected to extend to Greece and Italy.
Speaking about the discovery of natural gas resources in Cyprus` exclusive economic zone, Skourletis said this has altered the geopolitical facts in the region, putting the country at the center of the energy map of Southeastern Mediterranean.
Petroleum geologist Constantinos Nicolaou appeared optimistic that Cyprus has similar geological structures such as those discovered in Zhor. He explained that the giant discovery in Egypt` offshore was made possible when ENI changed its geological model and searched reefs instead of drilling in sandy areas with rocks.
CEO at Cyprus Natural Hydrocarbons Company Ltd, Charles Ellinas said that Cyprus should keep all options open in relation to the development of its natural gas and should develop a plan B and C, because of the increasingly reduced price of natural gas.
Ellinas also said that Cyprus must reconsider the option of compressed gas in order to achieve more competitive prices.
According to Ellinas, “we have put all our eggs in one basket” and he appeared concerned over the fact that Egypt has large gas reserves which will be developed over the next few years.
Ellinas also said that the recent decision to end talks between Israel and Egypt complicates the situation in the region.
Former Director of the Energy Department at the Energy Ministry, Solon Kasinis said that the proximity of Zhor deposit to Cyprus` exclusive economic zone (EEZ) is very promising, adding that it seems that “we will be key players in the region.”
He expressed hope that drilling in Block 11 by French company Total in 2016 will yield significant results.
CNA/TNE/GS/AGK/KCH/MM/2015
ENDS, CYPRUS NEWS AGENCY
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