Low gas prices have a limited effect on the planning of major
pipeline projects, including plans to export gas from the East
Mediterranean, DEPA CEO
Theodoros Kitsakos said.
He was responding to a question from New Europe at a Russian-Greek
forum in Athens on November 2 on whether low gas prices could affect the
development of gas projects, including the EastMed pipeline.
“The decision whether the gas from the Levantine Basin will come to
Europe via Cyprus and Turkey, which it is a political issue, or via
EastMed from an offshore pipeline to Crete, Peloponnese and upwards, it
does not have to do so much with the price of natural gas at Leviathan,”
the head of the Public Gas Corporation of Greece said, adding that this
is a long-term, strategic project.
“Regarding natural gas, as long as there is necessity to fulfill gas
needs and since we need to take steps to reduce climate change, we
cannot be shortsighted in the planning of long-term projects,” Kitsakos
said.
He stressed, “Historically and statistically, pipeline gas is cheaper
that other gas sources, especially LNG (liquefied natural gas)”.
He said DEPA, together with Poseidon and other partners, look at the
market developments for projects that “will deliver after 2025”. “As a
result it today’s planning, the border prices of natural gas, it’s not
the goal,” he said.
“DEPA, like other European companies, we’re in constant contact, we
check the prices, we check the relations, we see how these prices will
develop,” Kitsakos said, adding that geopolitical developments,
including past spats between Turkey and Israel as well as Russia and
Turkey, affected the prices and could not have be predicted.
He said that DEPA is also monitoring oil prices as they are in many
cases linked to gas contracts as well as the development of shale
deposits in the United States. “The Americans say that they will limit
the expansion of Russian gas by bringing LNG shipments to Europe. So
far, we have not seen any shipments,” Kitsakos said.
During his speech at the forum, the DEPA CEO highlighted the
importance of the Interconnector Greece Bulgaria (IGB), which will
connect with the Southern Gas Corridor (SGC), for the energy security of
Europe. Kitsakos also noted that DEPA and Gazprom are discussing the
South European Pipeline, which will be the extension of Turkish Stream
to Europe through the revival of the IGI Poseidon pipeline from Greece
to Italy.
However, Kitsakos noted that the South European Pipeline would have
to respect EU law. “It’s a delicate balance for the EU to access the
transfer of massive quantities of Russian gas via its territory,” he
said, noting that the target is for the pipeline to be completed by end
2019, beginning of 2020. “Greece is at the crossroads. We are not a
pawn, but a bishop,” Kitsakos said.
Russia’s Foreign Minister
Sergei Lavrov, who opened
the Russian-Greek forum, reportedly told a ceremony the University of
Piraeus in Athens later on November 2 that Moscow was ready to extend
the Turkish Stream gas pipeline into Europe after receiving absolute
guarantees from the European Union on the project implementation.
https://www.neweurope.eu/article/low-gas-prices-clog-pipeline-projects-eastmeds-leviathan/