Saturday, May 27, 2023

MINISTER OF ENERGY - CHEVRON POSITIVE FOR SUPPLY OF CYPRUS WITH NATURAL GAS

Filenews 27 May 2023 



The US company and operator of the Chevron dredge is positive regarding the possibility of supplying the Republic of Cyprus with natural gas from the "Aphrodite" field for power generation purposes, Minister of Energy, Commerce and Industry George Papanastasiou said on Friday. He also referred to the general interest of international companies regarding the new energy plan of the Republic of Cyprus.

Speaking after the end of a meeting between the President of the Republic, Nikos Christodoulides, at the Presidential Palace with a delegation of Chevron, led by its Vice President for exploration Frank Kasoulo, in order to examine ways to exploit the dredge as soon as possible, Papanastasiou said that the company presented a preliminary development plan for "Aphrodite", which will be studied in the coming days and will decide whether it is something that the Republic of Cyprus wants.

"We have indicated to the company the need to supply the Republic of Cyprus with natural gas for power generation purposes, which the company did not reject, saying it is one of the projects it can consider," he added.

He added that Chevron will also be at a workshop to be held on Monday morning with invited energy and technology companies, where they will discuss what can be done for the Cypriot market.

"We have explained to Mr. Kasoulos that our priority is for natural gas to reach the Republic of Cyprus in order to be used in the domestic market for the production of electricity from low-cost natural gas and to be passed on in the price of electricity in Cyprus," the Energy Minister underlined, adding that anything additional can be used either for liquefaction in Cyprus. or go in another direction, as Chevron may have thought and is included in the development program it presented.

"Personally, I have not yet seen the development plan of the Aphrodite dredge, we will see it in the coming hours and days, we will evaluate it and we will come back with our comments," he said.

Asked if there is any development in discussions with Israel on the Isai issue, Papanastasiou said that the Cypriot side has submitted its comments on a document of an interstate agreement between Israel and Cyprus, which was submitted to Israel about two weeks ago, with the aim of receiving preliminary comments during the minister's visit to the country on June 14 and 15. "I don't think it will be our main topic of discussion, rather it will be the discussion about the pipeline starting from Israel's EEZ to Cyprus' EEZ," he said.

Asked if during the meeting Chevron representatives gave an indication that they are positive towards Cyprus' proposal, Papanastasiou said that they were indeed positive, adding that they want to hear from Monday's workshop what will be said, to listen to the other companies that will be there and possibly to make a new design. which will also supply the RoC with natural gas, in the quantities needed for power generation purposes.

Asked whether the findings in the "Aphrodite" deposit are moving in a positive direction, the Energy Minister said that he is not aware of the findings, adding that the company may have something in mind from the A3 drilling.

He added that there is already a reading of around 4.2 trillion. cubic feet and the A3 drilling will confirm or give a better indication of what is actually in the deposit, as it focuses on the central part of the Aphrodite deposit.

Asked if in order for this case to proceed, the pending issue with Israel over Isai should be closed, Papanastasiou said that the issue is not an obstacle to the development of "Aphrodite", adding that as Cyprus wishes to be fair in consultations with Israel, but also in how it proceeds with the development of the deposit. it would be preferable not to have an obstacle with Isai before proceeding with the commercialization of the deposit.

Asked if there are indications from the other companies located in the Cypriot EEZ and have already identified deposits for when they will return for confirmatory drilling or if they have drawn up plans for the development of the deposits, and more specifically for blocks 6 and 10, the Minister of Energy said that in his statements yesterday the Vice President of ExxonMobil referred to the company's plans for the Eastern Mediterranean. noting that Cyprus' EEZ is of great interest to the company, which is considering drilling in the area, possibly in block 5 as the newest part it has undertaken.

"Our information tells us that the examination of geological data for block 5 is very promising. You understand that with these statements at the level of the vice president of a global organization, especially the American one, during which he also mentioned that ExxonMobil is interested in the new energy plan of the RoC, as well as a liquefaction terminal in Cyprus, there began to be interest in what we are trying through Monday's workshop, but also the meeting in Israel. for the purposes of natural gas flowing to Cyprus", he stressed.

Asked to comment on further statement by ExxonMobil's Vice President that before the company proceeds with any development or exploitation of the deposits, it wants to know the full potential of the area, therefore priority is given to more drilling, Mr. Papanastasiou described this position as absolutely correct, as if there is not enough natural gas to be channelled in one direction, high-cost infrastructure cannot be justified.

Asked if companies located in the EEZ of Cyprus or other players participate in Monday's workshop, the Minister replied that all companies located in the EEZ of Cyprus, some others that were interested in the EEZ of Cyprus in the past, some that buy from other companies in the EEZ of Cyprus, will participate. as well as companies located in Israel's EEZ.

"This workshop has attracted the interest of many companies and it is not only companies involved in energy, but also technology companies, companies building pipelines, investors interested in the region, as well as Israeli companies, whose interest is very important, some of which are state-owned," he added.

Finally, asked about the fate of the e-kalathi program, Mr. Papanastasiou said that it will not be abandoned, as it is a tool that must be given to consumers in order to be able to choose the purchases of their consumer goods.

"We stand ready to listen to any suggestions that exist, even though they should have already been said in the public consultation. I am not interested in political discussions, I am interested in the outcome, and the result and our concern is the consumer," he concluded.