MAY 20, 2018
One of the best-known Cypriots in the global natural gas sector is Menelaos Ydreos, executive director of public affairs of the International Gas Union (IGU).
Charles Ellinas spoke to him about the role of gas in the future energy mix and how Cyprus can benefit
What is the main function of the IGU and your role in the organisation?
The International Gas Union (IGU) was founded in 1931 and is a worldwide non-profit organisation aimed at promoting the political, technical and economic progress of the gas industry. IGU has more than 150 members worldwide on all continents, representing approximately 97 per cent of the world gas market. The Cyprus Charter member to the IGU is the Ministry of Energy, Commerce, Industry & Tourism.
As the executive director of public affairs, I oversee all of the global strategic communications and outreach efforts for the IGU ensuring that governments and policymakers recognise the significant role that gas can play in enabling the energy transition and cleaning-up the polluted and dirty air in the world’s cities.
Global energy is in a state of transformation. How is IGU managing this?
We have been active in the most senior global energy debates, and in discussions with the many multinational organisations advocating the position of gas as a catalyst to the energy transition in view of its excellent environmental, flexibility and reliability attributes. We have regularly published case-study reports that clearly demonstrate how gas can have a very significant contribution to improving the quality of life.
There is abundance of gas all over the world. Some say that some gas assets will have to remain stranded, unless they are developed in a cost-effective manner. How does IGU see the future of gas?
The future for gas is very bright, however, the industry must continue to innovate in order to improve its environmental footprint and reduce costs. The IGU’s many committees provide a platform for the global gas industry to focus on these issues and share best practices.
Hydrocarbons currently make up 80 per cent of the global primary energy mix. With the shale oil and gas revolution and resultant abundance, cost reduction combined with the increasing availability of liquefied natural gas (LNG), gas is well positioned to lead and be a catalyst to the energy transition.
Increasingly this involves LNG. How do you see LNG competing post-2020?
LNG has grown at over 6 per cent per annum during 2000-2016. This pace will only intensify with the many projects that are currently under construction. We expect to see close to 100 million tons of additional LNG supply coming to market by 2022, a supply increase of over 30 per cent.
Increasingly LNG is allowing natural gas to become a true global commodity. But the future is not without concern.
LNG as a fuel in transport and shipping is gaining market share. What is IGU doing to promote this?
Last year at the G20 Energy Sustainability Workgroup we released a report entitled Enabling Clean Marine Transport, where we highlight the many opportunities, but also challenges to the wider deployment of LNG as a clean and cheaper marine fuel, particularly in compliance to the 2020 low sulphur content regulation that the International Marine Organisation has mandated.
Can gas retain a major footing in power generation in the longer term against renewables combined with ever-increasing capacity batteries?
Without a doubt, renewables will make great headways in the power generation sector and are expected to make great gains. However, renewables are intermittent and require reliable, secure and responsive backup to ensure that security of electricity supply is maintained. Affordable and at-scale storage battery technologies are some way off. As such, gas can actually enable the greater deployment of renewables by offering secure and reliable backup generation.
Gas will increasingly play a bigger role as a power generation base-load fuel in the developing world. As we are seeing in China, there is also a significant role for gas to enable fuel switching away from coal in domestic heating and industrial use and to improve air quality.
IGU’s flagship conference is the World Gas Conference, this year taking place in Washington DC in June. What do you expect the highlights to be?
We believe that this will be the most important conference ever staged by the IGU in its 87-year history where we will debate the future of natural gas. We have been able to attract the most senior government/CEO thought leaders, NGOs and global gas industry experts and stakeholders to truly engage in important debates about the energy sector.
What do you see as the main challenges to developing Cyprus gas?
The Cypriot, and more broadly East Mediterranean, gas finds offer significant opportunities for regional economic development, improvement of quality of life and potentially a means to greater regional stability. But as we have recently seen, geopolitical tensions remain the key challenge for the region and particularly Cyprus. I am very hopeful that these challenges will be overcome in a way that leads to the greater stability of the region. The course of action to the many options that are being looked at right now will become much clearer following the next round of drilling.
What are your key recommendations to Cyprus on how best to develop and exploit its gas?
I have to commend the government of Cyprus and Minister Giorgos Lakkotrypis on the approach they have taken through the licensing rounds, and in doing so, attracting some of the biggest energy majors to Cyprus. The goveturkrnment has recently demonstrated great patience and diplomacy against Turkey’s gunboat diplomacy. Ultimately, I am hopeful that cooler heads will prevail and that some sort of win-win compromise can be reached that will allow the full potential to be developed, reunification talks or not.
You were born in Cyprus. What are your earliest memories and how did you enter your career in gas?
I was born and raised in Limassol. My fondest memories growing up in Cyprus were spending the summers at my grandfather’s hotel in Troodos, the Pingos Hotel. I always have and still support the soccer club AEL having witnessed the Papadopoulos brothers’ golden-era at AEL.
My family emigrated to Canada in 1967. After graduating from the University of Waterloo in civil engineering, I began my career at Union Gas, Canada’s largest integrated storage, transmission and distribution utility. I held several executive roles there until I launched my own consulting firm Energy Vantage Inc in 2013. I also held the roles of interim president and CEO of the Canadian Gas Association and the Ontario Energy Association.
I have had a long engagement with the IGU and in 2015 I was asked to assume the role of coordination committee chairman. In 2016, I was asked to also assume the newly established role of executive director of public affairs, aiming to raise the global voice of gas.
What’s the origin of your surname Ydreos which is unusual for a Cypriot?
Yes, it’s not a typical Cypriot name. My great grandfather moved his family to Cyprus from the island of Hydra and that is where the roots of the name come from. My grandfather left his mark on Cypriot sports, as in 1911 he was a champion marathon runner, competing for GSO.
What does Cyprus mean for you in the longer term?
Canada is where I am proud to live and with my wife where we are raising our two boys, but Cyprus is always home. I visit the island every chance I get to reconnect and nurture my relationship with family and friends. I have always said that I have a wider social network in Cyprus than I do anywhere else. My family spent two months in Cyprus last year and enjoyed it immensely. I hope to increasingly spend more and more time in Cyprus in the coming years. Besides, it’s the perfect way to watch more AEL games!
Dr Charles Ellinas is nonresident senior fellow of Global Energy Centre at the Atlantic Council - @CharlesEllinas
Charles Ellinas spoke to him about the role of gas in the future energy mix and how Cyprus can benefit
What is the main function of the IGU and your role in the organisation?
The International Gas Union (IGU) was founded in 1931 and is a worldwide non-profit organisation aimed at promoting the political, technical and economic progress of the gas industry. IGU has more than 150 members worldwide on all continents, representing approximately 97 per cent of the world gas market. The Cyprus Charter member to the IGU is the Ministry of Energy, Commerce, Industry & Tourism.
As the executive director of public affairs, I oversee all of the global strategic communications and outreach efforts for the IGU ensuring that governments and policymakers recognise the significant role that gas can play in enabling the energy transition and cleaning-up the polluted and dirty air in the world’s cities.
Global energy is in a state of transformation. How is IGU managing this?
We have been active in the most senior global energy debates, and in discussions with the many multinational organisations advocating the position of gas as a catalyst to the energy transition in view of its excellent environmental, flexibility and reliability attributes. We have regularly published case-study reports that clearly demonstrate how gas can have a very significant contribution to improving the quality of life.
There is abundance of gas all over the world. Some say that some gas assets will have to remain stranded, unless they are developed in a cost-effective manner. How does IGU see the future of gas?
The future for gas is very bright, however, the industry must continue to innovate in order to improve its environmental footprint and reduce costs. The IGU’s many committees provide a platform for the global gas industry to focus on these issues and share best practices.
Hydrocarbons currently make up 80 per cent of the global primary energy mix. With the shale oil and gas revolution and resultant abundance, cost reduction combined with the increasing availability of liquefied natural gas (LNG), gas is well positioned to lead and be a catalyst to the energy transition.
Increasingly this involves LNG. How do you see LNG competing post-2020?
LNG has grown at over 6 per cent per annum during 2000-2016. This pace will only intensify with the many projects that are currently under construction. We expect to see close to 100 million tons of additional LNG supply coming to market by 2022, a supply increase of over 30 per cent.
Increasingly LNG is allowing natural gas to become a true global commodity. But the future is not without concern.
LNG as a fuel in transport and shipping is gaining market share. What is IGU doing to promote this?
Last year at the G20 Energy Sustainability Workgroup we released a report entitled Enabling Clean Marine Transport, where we highlight the many opportunities, but also challenges to the wider deployment of LNG as a clean and cheaper marine fuel, particularly in compliance to the 2020 low sulphur content regulation that the International Marine Organisation has mandated.
Can gas retain a major footing in power generation in the longer term against renewables combined with ever-increasing capacity batteries?
Without a doubt, renewables will make great headways in the power generation sector and are expected to make great gains. However, renewables are intermittent and require reliable, secure and responsive backup to ensure that security of electricity supply is maintained. Affordable and at-scale storage battery technologies are some way off. As such, gas can actually enable the greater deployment of renewables by offering secure and reliable backup generation.
Gas will increasingly play a bigger role as a power generation base-load fuel in the developing world. As we are seeing in China, there is also a significant role for gas to enable fuel switching away from coal in domestic heating and industrial use and to improve air quality.
IGU’s flagship conference is the World Gas Conference, this year taking place in Washington DC in June. What do you expect the highlights to be?
We believe that this will be the most important conference ever staged by the IGU in its 87-year history where we will debate the future of natural gas. We have been able to attract the most senior government/CEO thought leaders, NGOs and global gas industry experts and stakeholders to truly engage in important debates about the energy sector.
What do you see as the main challenges to developing Cyprus gas?
The Cypriot, and more broadly East Mediterranean, gas finds offer significant opportunities for regional economic development, improvement of quality of life and potentially a means to greater regional stability. But as we have recently seen, geopolitical tensions remain the key challenge for the region and particularly Cyprus. I am very hopeful that these challenges will be overcome in a way that leads to the greater stability of the region. The course of action to the many options that are being looked at right now will become much clearer following the next round of drilling.
What are your key recommendations to Cyprus on how best to develop and exploit its gas?
I have to commend the government of Cyprus and Minister Giorgos Lakkotrypis on the approach they have taken through the licensing rounds, and in doing so, attracting some of the biggest energy majors to Cyprus. The goveturkrnment has recently demonstrated great patience and diplomacy against Turkey’s gunboat diplomacy. Ultimately, I am hopeful that cooler heads will prevail and that some sort of win-win compromise can be reached that will allow the full potential to be developed, reunification talks or not.
You were born in Cyprus. What are your earliest memories and how did you enter your career in gas?
I was born and raised in Limassol. My fondest memories growing up in Cyprus were spending the summers at my grandfather’s hotel in Troodos, the Pingos Hotel. I always have and still support the soccer club AEL having witnessed the Papadopoulos brothers’ golden-era at AEL.
My family emigrated to Canada in 1967. After graduating from the University of Waterloo in civil engineering, I began my career at Union Gas, Canada’s largest integrated storage, transmission and distribution utility. I held several executive roles there until I launched my own consulting firm Energy Vantage Inc in 2013. I also held the roles of interim president and CEO of the Canadian Gas Association and the Ontario Energy Association.
I have had a long engagement with the IGU and in 2015 I was asked to assume the role of coordination committee chairman. In 2016, I was asked to also assume the newly established role of executive director of public affairs, aiming to raise the global voice of gas.
What’s the origin of your surname Ydreos which is unusual for a Cypriot?
Yes, it’s not a typical Cypriot name. My great grandfather moved his family to Cyprus from the island of Hydra and that is where the roots of the name come from. My grandfather left his mark on Cypriot sports, as in 1911 he was a champion marathon runner, competing for GSO.
What does Cyprus mean for you in the longer term?
Canada is where I am proud to live and with my wife where we are raising our two boys, but Cyprus is always home. I visit the island every chance I get to reconnect and nurture my relationship with family and friends. I have always said that I have a wider social network in Cyprus than I do anywhere else. My family spent two months in Cyprus last year and enjoyed it immensely. I hope to increasingly spend more and more time in Cyprus in the coming years. Besides, it’s the perfect way to watch more AEL games!
Dr Charles Ellinas is nonresident senior fellow of Global Energy Centre at the Atlantic Council - @CharlesEllinas
