Papanastasiou: Cyprus' strategy coincides with that of companies invited at workshop

Cyprus’ strategy in many places coincides with the strategy of energy companies, invited recently at a workshop organized in Nicosia, titled "The Cyprus Gateway: Natural Gas to Power and Liquefaction", Energy Minister George Papanastasiou has said.

Papanastasiou rebuked reports in the Cypriot press about the workshop and explained the next steps as regards the government’s energy planning and strategy. Speaking after a Cabinet meeting, in Nicosia, the Minister said that some reports present a picture that is not correct, as he put it. He said once again that the workshop was a total success and the participating companies were briefed on the government’s strategy in order to examine if their strategy matches ours.

Papanastasiou said that these companies are present in Cyprus’ exclusive economic zone and in the Israeli EEZ and have the know-how to help us with our strategy. He also said that some companies will be able to transfer the natural gas to the markets.

The Minister said that Cyprus’ strategy in many places coincides with the strategy of the invited companies adding that any reports that give a negative picture are wrong.

Papanastasiou explained that our strategic plan is to have cheap electricity, so we need low-cost natural gas to arrive via a pipeline. He added that we already have an expression of interest for a pipeline from Israel to Vassiliko in Cyprus and therefore the primary goal set at the workshop has been achieved.

The second objective, he said, was for liquified gas to reach European markets, since the infrastructures are costly. He explained that the focus is for natural gas to be a transitional product that will take us to green energy, which is the primary objective.

He explained that green energy is our goal and this is our plan which was conveyed to the President of the Republic. The Minister noted that because the transitional stage involves the natural gas and other geostrategic issues, the President needed to be briefed in order to give his approval.

Energy Minister said that there is currently a commitment with Egypt whose infrastructure is probably in the right direction. But he went on to say that the Republic of Cyprus needs to secure its own income. He said that Aphrodite’s management company has already prepared an updated draft proposal for the development of this hydrocarbon block which is under assessment.

He added that Cyprus agrees with some points and not with some others. According to the plan, the development is set for 2028, pointing out that this the block is there since 2011.

He said that consultations will be made to get this closer to our objectives and our own strategy.

Replying to a question the Minister told the press that there is interest from companies in building a pipeline for the supply of natural gas in Israel and this interest is expected to be expressed formally this month. He explained that the next step is to translate this express of interest in some form of agreements.

Papanastasiou said that from the moment an investment decision is made and there is natural gas to be offered for conventional power generation, it will take 18 months for the pipeline from Israel to Vasiliko. Responding to a question about whether an interstate agreement will be made, the Minister explained that interstate agreements do not provide solutions, but rather the framework of the whole project.

He said the infrastructure around Aphrodite is non-existent. In another question about Chevron's plans in this direction he said that they made evaluations and presented us with a proposal in an updated form. It indicated, he said, a specific destination infrastructure in Egypt and from there it would be pushed through onshore infrastructure to a specific liquefaction terminal.

Papanastasiou said that it takes time to connect these to Aphrodite and extra infrastructures are needed. He said the assessment indicated 2028 but he believes that it could be done earlier, "maybe 2027 or even earlier".