Synergies are the “magic word” to develop the region’s natural gas resources, according to Energy Minister George Papanastasiou, who spoke at a Gas Summit in Limassol on Tuesday.
At the Eastern Mediterranean Energy Conference, Papanastasiou highlighted the changing focus of energy companies towards quicker investment returns, influenced by the energy transition’s emphasis on renewables. He stressed, “Nowadays with the shorter life span of natural gas because of the targets for renewables we understand that synergies are what investors should be looking for.”
The Minister outlined the “Gas to Power” project, an initiative aimed at diversifying Cyprus’ energy mix. He mentioned the introduction of Liquified Natural Gas (LNG) for domestic power generation through the Natural Gas Company (DEFA), and plans for augmenting renewable energy output, potentially for export via the EuroAsia Interconnector. He also discussed options for Cyprus’ natural gas, including transport to Egypt for domestic use or liquefaction for export, as well as potential in-country processing and export using modular LNG plants.
However, Papanastasiou conceded that Cyprus lacks the infrastructure to become a regional energy hub, in contrast to Israel and Egypt, stating, “I believe that given the background of Egypt and Israel, they are well ahead of natural gas resources and because of the infrastructure that is already being used.”
Speaking at the same event, Kimberly Harrington, US Assistant Deputy Secretary of State for Energy, reaffirmed the US’s commitment to regional energy cooperation, citing dialogues and forums like the three-plus-one dialogue and the EMGF forum. She stressed the significance of energy partnerships and regional integration, particularly in the Eastern Mediterranean, acknowledging the substantial progress made over the past decade.
Addressing Cyprus specifically, Harrington noted the mutual benefits of developing the island’s natural resources for Cyprus and the region, underlining the US’s fundamental goal of energy security and cooperation.
Additionally, Wissam Chbat, Board member and former Chairman of Lebanon’s Petroleum Authority expressed hope for not only discovering but also capitalising on natural gas reserves in Lebanon. He recognised Egypt as an ideal hub for the Eastern Mediterranean, given its advantageous positioning and strong ties with Cyprus and Egypt.
Opening the conference, Toula Onoufriou, Chairman of Cyprus Hydrocarbons Company (CHC), reported an estimated 15 trillion cubic feet of gas across five discoveries in Cyprus’ EEZ. She detailed the ongoing appraisal and development processes for these discoveries, underscoring the criticality of decision-making at these stages and the Ministry of Energy’s role.
“The quality of decision-making at appraisal and select stages are of paramount importance and the Ministry of Energy with support by the CHG has a critical role in understanding, influencing and supporting investors’ decisions at these crucial stages,” she stressed.