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It is with great pleasure that
I welcome you to “The Cyprus Gateway: Natural Gas to Power and
Liquefaction” high-level workshop, organised by the Ministry of Energy,
Commerce and Industry and the Cyprus Hydrocarbons Company.
Today’s workshop is an
initiative of my Government to refocus on Cyprus’ energy needs and
competitiveness, as a matter of utmost priority.
The unprecedented energy crisis
following Russia’s invasion of Ukraine, combined with the inflationary
pressures on world economies, have forced the European Union to urgently look
for alternative energy sources and supply routes. As a result, over the past
two years we have witnessed a clear shift in global geopolitical and energy
market realities, which unavoidably have also impacted Cyprus.
The new Government of the
Republic of Cyprus, from its first day in office, has set the reduction
of electricity cost for households and businesses as a priority, which will
support the country’s competitiveness and, consequently, the viable and
sustainable growth of our economy.
At the same time, we are called
upon to efficiently address the issue of Cyprus’ energy isolation and
dependence on imports of fuels, thus enhancing security of our energy supply.
This will be achieved with
interconnections with neighbouring countries, and by promoting electricity
storage systems, which are essential for fully harnessing the energy produced
from renewable energy sources.
As key pillars of the updated
energy strategy of the Republic of Cyprus, we have defined:
•
the strengthening of the security of energy supply,
•
neutralising the effects on Cyprus from geopolitical events that have an
impact on energy cost,
•
the lifting of the country’s energy isolation,
•
the sustainable and efficient operation of a competitive electricity market
and an internal natural gas market,
•
the rapid transition to a green and circular economy, based on the EU’s Green
Deal and “Fit for 55” package, which aims at reducing greenhouse gas
emissions by at least 55% by 2030.
In our efforts to substantially
reduce the cost of power generation in Cyprus and, consequently, the price of
electricity to consumers, we are proposing, through “The Cyprus Gateway”
initiative, to consider an alternative to efficiently monetise the Eastern
Mediterranean’s natural gas resources. By placing Cyprus first, we have come
up with a technically feasible solution, which will be beneficial, in our
opinion, for all parties, to bring natural gas to Cyprus for power generation
and, in parallel, for liquefaction and exportation to Europe.
The focus will be on
transporting, via a pipeline, natural gas originating from fields in the
Eastern Mediterranean for use in conventional power generation in Cyprus. To
ensure the project’s viability, an LNG facility can be developed in parallel,
at the Vasilikos area, which can be floating or of modular technology on
shore.
Through this facility, natural
gas from the Eastern Mediterranean region can be liquefied in Cyprus and
transported by LNG carriers to the European markets, thus creating an East
Med corridor of gas supply to Europe. This project is of great interest to
the EU.
I am confident that through synergies
between energy, technology and investment organisations and the partnership
of the Government of Cyprus, we will unlock mutual and equitable benefits for
all of us.
We therefore urge the companies
and investors active in the Eastern Mediterranean, as well as others who look
favourably upon the region as a potential new source of natural gas supply
for Europe, to explore these synergies and of course with our support, to
take advantage of this opportunity.
This alternative approach of
our energy strategy will be presented today by our experts. Please consider
being part of this effort and propose ways through which you can be involved
in the natural gas and electricity supply chains of the project. Our team and
the Minister of Energy stand ready during the workshops and the one-to-one
meetings that will follow, to make any clarifications you may need and listen
to your feedback and ideas for optimising our plans.
Cyprus, we believe, is uniquely
positioned to positively contribute to energy solutions that the Eastern
Mediterranean can offer.
Major cross-border projects,
including electricity interconnections, are being promoted in the region,
some funded by the EU as a result of their significance to EU member states
and Europe as a whole.
We aim to continue and
intensify our efforts towards energy diplomacy, actively promoting
collaboration on energy between Eastern Mediterranean countries. “The Cyprus
Gateway” initiative is part of these intensified efforts, providing to
interested entities an alternative for leveraging knowledge and expertise and
monetising gas resources, through transportation and liquefaction of gas in
Cyprus.
The Ministry of Energy of the
Republic of Cyprus and the Cyprus Hydrocarbons Company are ready to engage
with you and your industry peers on how we can create investible
opportunities.
Today’s workshop is only the
beginning of my Government’s efforts to create a robust economy for the
people of the Republic of Cyprus, whilst contributing to the security of
energy supply of the European Union.
In concluding, I wish to extend
my deepest appreciation, yet again, to all the company representatives
participating in today’s workshop, the deliberations of which I am certain
will be very interesting and very productive.
(RM/EP)
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