Commerce Minister Neoklis Sylikiotis said the target to import natural gas to Cyprus by 2015 was feasible, from either Israel or following the conclusion of a call.
The Minister was speaking here today, after meeting with a working group, composed of representatives from Cyprus’ Energy Regulation Authority, Natural Gas Public Company (DEFA) and the Electricity Authority of Cyprus (EAC).
The aim of the meeting, the Minister said, was to prepare ahead of a meeting in Israel, on September 2 to discuss the interim solution of importing Israeli gas.
The Minister clarified that DEFA and EAC were preparing at the same time the procedures for issuing a call for tenders for importing natural gas into the island, the soonest possible.
Both procedures are running in parallel, according to Sylikiotis who noted that decisions on the interim solution would be taken by the end of this year.
US Company “Noble Energy”, which conducted exploratory drillings in Cyprus’ Exclusive Economic Zone, announced that the initial data indicate the existence of a natural gas reservoir ranging from 5 to 8 trillion cubic feet (tcf) with a gross mean of 7 tcf.
The government continues the dialogue with the company over the transportation of local reserves to the island for energy production and commercial exploitation purposes, estimating their arrival on 2017 or early 2018. The Ministerial Council decided recently to explore the possibility for an interim solution that would allow Cyprus to import natural gas from third parties to cover its energy production needs.
The Minster said that discussions with Israel were separate from the general discussion over the cooperation of both countries in energy matters.
He added that, in case of an agreement, Cyprus would import from Israel 0.5 billion cubic meters (bcm) of natural gas per year. Israel’s “Tamar” reserves would be available in 2013, while the trasportation to Cyprus would require another two years.
Natural gas imports are expected to lower Cyprus’ current energy production cost.
According to estimates, the country would require 1-1.5 bcm when converting all its energy production infrastructure to work with natural gas.
On the parallel procedure for the call for tenders, the Minister said it could be concluded within a few months. He added that the call will be ready by September, but noted that this option depends on the outcome of discussions in Israel.
“The goal to import natural gas as an interim solution by the beginning of 2015 is feasible”, Sylikiotis underlined.
He added that the duration of imports would range from three to five years, noting that otherwise the cost would be too high.
Any infrastructure needed will be temporary, the Minister went on, adding that possible options include floating infrastructure or the transportation of compressed gas.
The Minister referred further to a letter he sent to his counterparts in Israel and Greece for a joint meeting to discuss energy infrastructure. Sylikiotis said the Israeli side already responded positively and he already had a telephone conversation with the Greek Energy Minister Livieratos.
The aim of this meeting will be the establishment
