Cyprus & World News

Cyprus natural gas strategy implemented as planned

24 May, 2013

The governmental strategy for the exploitation of natural gas reserves in Cyprus’ exclusive economic zone, the creation of a gas liquefaction (LNG) terminal as well as the natural gas interim solution is moving ahead as planned in order to meet all the datelines, Energy Minister George Lakkotrypis has said.

Lakkotrypis was speaking Thursday before the House Commerce Committee where he presented all the governmental actions and plans regarding the natural reserves.

As regards the creation of a national hydrocarbons fund, the Minister said that procedures are moving ahead, adding that this fund should be under the umbrella of the Finance Ministry.

Lakkotrypis also referred to the results of the recent European Council in the energy field, pointing out that Cyprus now has a place on the energy map.

Replying to comments by lawmakers that there is a delay in the governmental process, the Minister said that the whole issue of energy is complicated and one must always bear in mind the geopolitical developments in the region.

He reaffirmed the government’s position that oil extraction must take place end of 2019 beginning of 2020. Lakkotrypis also said that soon the government will sign an MoU with Houston –based Noble for the LNG.

In his statements, the Minister said that government is considering the merging of the Cyprus National Hydrocarbons Company (KRETYK) with Natural Gas Public Company (DEFA) with the aim to create an optimal organization.

Cyprus entered the natural gas scene in late 2011, when US-based Noble Energy discovered a gross mean of 7 trillion cubic feet of natural gas in Cyprus` block 12.

Contracts were signed with the ENI/KOGAS consortium in blocks 2, 3 and 9 within Cyprus’ EEZ and Total for blocks 10 and 11 in the context of the 2nd licensing round.