A group of technocrats set up by Commerce, Industry and Tourism Minister Neoclis Sylikiotis with a view to discuss the transportation of natural gas from Israeli block Tamar to Cyprus until the end of 2015 will visit  Israel on September 2.

Sylikiots told CNA that after Israel’s positive response at the end of July, he appointed a working group that will discuss with the Israeli group the technical and financial details of the issue.

The Cyprus team comprises Director of the Energy Service at the Ministry of Commerce, Industry and Tourism and representatives of the Natural Gas Public Company (DEFA), the Cyprus Energy Regulatory Authority  (CERA) and the  Electricity Authority of Cyprus (EAC).

Sylikiotis stressed that the government is taking action to ensure that natural gas is transported to Cyprus the soonest possible and noted that the working group will discuss about the volume of natural gas that Cyprus can get from Israel as well as the price level.

Asked about the way natural gas will be transported, the minister noted that this is something to be decided on a later stage after the volume and price are determined pointing out though that the transportation in a compressed form appears to be  more suitable.

He added that the transportation of natural gas from Tamar is discussed as an interim solution until the drilling and use of natural gas from Block 12 of Cyprus Exclusive Economic Zone, which is expected in 2017 or 2018.

The Council of Ministers decided recently to authorize DEFA, in collaboration with EAC, to prepare the documents for the announcement calling for expression of interest in bringing natural gas to Cyprus the soonest possible.

The government approved on November 23, last year the launch of a second licensing round for the remaining 12 offshore blocks, a decision published in the EU Official Journal on February 11, this year and expired on May 11, after a three-month bidding period. Fifteen bids from 5 companies and 10 from joint ventures were submitted on the 11th of May for the second licensing round concerning the Republic of Cyprus’ offshore hydrocarbon reserves.

Bids were submitted for nine of the 12 offshore blocks, comprising the Cypriot EEZ. The first licensing round, concluded in 2007, resulted in granting concessions to Houston-based “Noble Energy” for exploratory drilling in Cyprus’ EEZ block 12.

Noble started drilling on September 2011 and the initial data that emerged from the exploratory drilling and the evaluation checks carried out, indicate the existence of a natural gas reservoir ranging from 5 to 8 trillion cubic feet (tcf) with a gross mean of 7 tcf.