UK-based oil and gas producer Energean has submitted applications to import and supply natural gas to Cyprus, commencing in 2021.
The submission of these applications to the Republic of Cyprus follows the Karish to Cyprus Preliminary Pipeline Development Plan, which has already been presented to the Cyprus Energy Regulatory Authority.
According to the development plan, natural gas will be transported through pipelines from the Karish offshore block to the Energean Power floating production, storage and offloading (FPSO) unit, and from there through a pipeline to Vassiliko in Cyprus.
The pipeline connecting the Energean Power FPSO to Vassiliko is expected to measure 215km, transporting natural gas from the Karish North field, offshore Israel, which contains an estimated 25 billion cubic metres of discovered recoverable resources.
Total investment will be approximately $350 million (€316 million) to be funded by Energean. The Republic of Cyprus will not be responsible for any upfront cost, with natural gas anticipated to be received from 2021.
“Energean’s proposal offers the Republic of Cyprus the option to switch to natural gas as soon as possible, and under the most competitive terms,” commented Mathios Rigas, CEO of Energean. “Execution of the proposal will bring competition to the Cypriot natural gas market, decrease energy costs across the economy and result in enhanced diversity and security of supply.
“Our proposal enhances the planning of the Republic of Cyprus and the security of supply, as it is supplementary to the LNG import procedures launched by the Cypriot Government. We expect that the Republic of Cyprus will take advantage of the options that the market offers for the benefit of the Cypriot economy and the consumers.”
The Energean Power FPSO has a capacity of 8 billion cubic metres per year; Energean has already signed gas sales and purchase agreements with Israeli independent power producers and industrial customers for 4.5 billion cubic metres of gas per year, for an average length of 16 years from first gas in 2021.
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