Filenews 13 April 2023
The option of importing quantities of natural gas into Cyprus both from Cypriot deposits and in the region, for power generation purposes, in combination with a small liquefaction terminal for natural gas export, is put to companies operating in the Cypriot Exclusive Economic Zone (EEZ) by the Minister of Energy, George Papanastasiou, as he stated.
On the occasion of statements by ENI's Chief Operating Officer of Natural Resources Guido Brusko on the website upstream on line regarding the development options of the deposits in block 6, Mr. Papanastasiou said that the companies are examining options for the exploitation of the deposits, which are being discussed with the Cypriot government.
Speaking on the website, Brusko said ENI was considering either the option of transferring the quantities of block 6 to the Damietta liquefaction terminal in Egypt, connecting block 6 to Zohr's infrastructure or a partnership with Exxon Mobil using a floating terminal (FLNG).
"Essentially these are the ones (options) that they assessed from the beginning with an additional position of ours to ENI that we would like their decisions to be expedited and that is why we put on the table part of the natural gas to be channelled to Cyprus," he said.
The Minister of Commerce said that he had already had separate acquaintance meetings with representatives of the companies and in this context "we put some things on the table for them".
According to Papanastasiou, the option of importing part of the deposits in Cyprus has a double objective. First, the advent of cheaper fuel for electricity generation, compared to the "very expensive" conventional fuel, which will help both households and industry and the economy at large, and secondly, the acceleration of the use of natural gas before the deadline set by the EU for the use of this fuel through the Fit for 55 package expires.
Explaining that the use of natural gas for electricity production purposes in Cyprus is not enough on its own to justify the large capital expenditure for the required infrastructure, Papanastasiou pointed out that for this purpose the option of a small liquefaction terminal (modular LNG plant) was also on the table.
He said that the Ministry is preparing a new strategy for the course we would like to follow, which will be put to the President of the Republic for approval and then put to the companies in a joint meeting he will have with them.
"The goal is cheaper energy in Cyprus to help the household, industry and economy and because this alone cannot justify the infrastructure needed to bring gas from the region, we are essentially trying to create an incentive through a liquefaction terminal, which will be discussed at the joint meeting. when we present the document."
