The challenges and opportunities in the energy sector for Cyprus were
the focus of a discussion among experts during the 4th Energy Symposium,
held on Tuesday in Nicosia.
The demand and the supply of natural
gas in Egypt will continue to increase and Egypt continues to be very
interested in the Cypriot natural gas, said Dimitris Fessas, Manager at
Cyprus Hydrocarbons Company. He added that a few weeks after the
discovery of Zhor gas field, in the Egyptian offshore, there was a
reassessment of the new situation, but it became apparent that Cyprus'
strategy still remains on the table.
He added that Egypt`s plan
on Zhor is to meet the needs of the domestic market, noting that the
liquefaction terminals of BG and those at the city of Damietta are
potential buyers of Cypriot gas.
Fessas said that there are
potential buyers who resell domestically and explained that the final
agreement will depend on various parameters such as quantities, prices
and guarantees given.
According to Fessas, the discovery of Zhor
in Egypt can be considered competition as well as an opportunity for
synergies in the region. He said the joint development of deposits will
create economies of scale, reduce costs and increase profits.
Greece
is willing to act as a transit country for Cypriot and Israeli natural
gas, on its way to Europe, Greece`s Minister of Environment and Energy
Panos Skourletis has noted. In a written address that was read at the
symposium, Skourletis notes that this can be done either through
tankers, or directly through the EastMed pipeline, yet to be
constructed.
Skourletis highlighted Greece`s ambition to become
an energy hub in South East Europe and contribute to the continent`s
energy security. He remarked that there is particular mobility as of
late concerning LNG, with an aim to enhance the security for natural gas
in the region.
Athens seeks to play a central role in the
region, due to a combination of gas pipelines running through the
country, the Greek Minister said, making particular reference to IGB
connecting Bulgaria with Greece, the natural gas hub in northern Greece
and the designs for a new Russian gas pipeline, expected to extend to
Greece and Italy.
Speaking about the discovery of natural gas
resources in Cyprus` exclusive economic zone, Skourletis said this has
altered the geopolitical facts in the region, putting the country at the
center of the energy map of Southeastern Mediterranean.
Petroleum
geologist Constantinos Nicolaou appeared optimistic that Cyprus has
similar geological structures such as those discovered in Zhor. He
explained that the giant discovery in Egypt` offshore was made possible
when ENI changed its geological model and searched reefs instead of
drilling in sandy areas with rocks.
CEO at Cyprus Natural
Hydrocarbons Company Ltd, Charles Ellinas said that Cyprus should keep
all options open in relation to the development of its natural gas and
should develop a plan B and C, because of the increasingly reduced price
of natural gas.
Ellinas also said that Cyprus must reconsider the option of compressed gas in order to achieve more competitive prices.
According
to Ellinas, “we have put all our eggs in one basket” and he appeared
concerned over the fact that Egypt has large gas reserves which will be
developed over the next few years.
Ellinas also said that the recent decision to end talks between Israel and Egypt complicates the situation in the region.
Former
Director of the Energy Department at the Energy Ministry, Solon Kasinis
said that the proximity of Zhor deposit to Cyprus` exclusive economic
zone (EEZ) is very promising, adding that it seems that “we will be key
players in the region.”
(Famagusta Gazette)