Energean Oil & Gas, the oil and gas producer focused on the Mediterranean, said that its unit Energean International has submitted to the authorities of Cyprus, applications to import and supply natural gas to Cyprus commencing 2021.
The submission of the applications follows the Karish to Cyprus Preliminary Pipeline Development Plan that has already been presented to Cyprus Energy Regulatory Authority.
According to the plan, natural gas will be transported through pipelines from the Karish offshore block to the Energean Power floating production, storage and offloading unit, and from there through a pipeline to Vassiliko, Cyprus, where it will landfall.
The pipeline from the Energean Power FPSO to Vassiliko will have a total length of 215 kilometers and transport natural gas from the Karish North field, offshore Israel, which contains 25 Bcm of discovered recoverable resources.
Total investment will be circa $350 million and will be funded by Energean.
Provided that there will be no delays in permitting procedures, the project will allow Cyprus to receive natural gas from 2021.
Moreover, the project will further strengthen Cyprus’ geostrategic role in the Eastern Mediterranean, in accordance with the trilateral cooperation between Cyprus, Israel and Greece and in reference to the East Med Pipeline project that is planned to transport natural gas to Europe.
Mathios Rigas, CEO of Energean, said, “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.”
Energean has already signed Letters of Intent (LOIs) with all three IPPs that have been granted a license to construct combined cycle power plants in Cyprus, namely Power Energy Cyprus, Lysarea Energia and Paramount Energy Corporation.
The Energean Power FPSO has a capacity of 8 Bcm per year and Energean has already signed firm GSPAs with Israeli IPPs and industrial consumers for 4.5 Bcm per year for an average period of 16 years as of 2021.