Cyprus Gas and Regional Geopolitics

Πηγή: Natural Gas Europe
Jan 20 2012

The discovery and exploitation of natural gas resources off Cyprus’ coast could make a substantial contribution to Europe’s energy security and increase the region’s geopolitical stability, the Director of Energy at Cyprus Ministry of Commerce, Industry and Tourism Solon Kassinis said today.

Speaking during a conference, organized in Nicosia by the Institute of Energy for South East Europe, concerning “Cyprus’ energy resources and new developments in the Eastern Mediterranean”, Kassinis said that developments could turn the region into an area of sustainable and balanced economic development, as well as enhance political stability.

Referring to the prospects following the discovery of hydrocarbon reserves, Kassinis noted that this fact will turn Cyprus into an exporter of natural gas, modernize Cyprus’ economy and improve the country’s trade balance.

He further said that this discovery will eventually lessen the country’s carbon dioxide emissions, establish an industry related to natural gas technology and services, and provide revenue for RES investment.

By developing alliances with other states in the energy sector, Cyprus’ national security may also increase, the Director of Energy noted. 

Kassinis also referred to future energy projects with Israel, like the construction of a bi-governmental pipeline, a methanol plant and a power generation station, and noted the prospects that arise from cooperation with Greece.

During his address Kassinis described Cyprus’ recent activity for the exploration of energy resources, and referred to the country’s regulatory framework concerning exploration concessions and exploitation licenses, as well as inter-state agreements with neighboring countries for the delimitation of the EEZ.

Regarding the second licensing round for Cyprus’ EEZ blocks, Kassinis said the government was expecting within the next two weeks to receive the translation of the official documents from the EU before kicking off the next round.

He said that s period of minimum three months will follow, within which interested parties may submit their application to the competent authorities for evaluation. 

Cyprus Country Manager of “Noble Energy”, John Tomich, while addressing the same conference, spoke about his company’s natural gas findings at block 12, adding that estimates range at a gross mean of 7 trillion cubic feet.

Tomich said that reserve estimates are based from the drilling at only one well and added that drilling in additional wells might give a better picture for the total capacity of reserves.

He finally noted that the most flexible and profitable form of commercialization for the resources discovered at block 12 might be the liquefied natural gas (LNG), since, as he said, it will give Cyprus the opportunity to export its natural gas to international markets and obtain the best price.