Cyprus offers new oil and gas supply routes to Europe

• 13 years ago (2011-06-01)
• David Flin

Europe 1089

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Cyprus could become a key geo-political and geo-strategic player in the Mediterranean region, offering new oil and gas supply routes to Europe, according to Antonis Pascalides, Cyprus Commerce Minister.

He said that Cyprus follows its own hydrocarbon exploration programme within its Exclusive Economic Zone, and has already conducted an Offshore Licensing Round in 2007, which resulted in the granting of one Hydrocarbon Exploration License. He said: “Exploration activities are well underway, with the continuous appraisal of offshore projects. According to the relevant schedule, an exploratory drilling in one of the offshore exploration blocks will take place by the end of this year. Depending on the outcome of the findings from this exploratory drilling, options including the transfer of natural gas via a subsea pipeline and the potential for a liquefaction unit in Cyprus, will be evaluated.”

Paschalides said that in an effort to diversify its energy sources, enhance security of its energy supply, reduce CO2 emissions in the power sector, and end its energy ‘isolation’, Cyprus has decided to introduce natural gas into its energy mix. He noted that the most recent big discoveries of offshore gas deposits in the Mediterranean region, together with the existing oil and gas deposits in the Middle East, present a huge energy potential and certainly a prospective new source for Europe.

He said: “An integrated European internal market, security of supply, diversification of routes and new energy sources are all ‘hot’ topics today. To achieve all these, comprehensive projects of new and improved infrastructure, providing flexibility in oil and gas transportation, will be required. These alone, however, are not enough. The oil and gas volumes necessary for such investments to materialise must also be in place. One way to fulfil this is by utilising the energy potential and oil and gas prospects located in the Eastern Mediterranean region. Cyprus could become a key geo-political and geo-strategic player in the Mediterranean, offering opportunities for new supply routes to Europe.”