Cyprus & World News

Total E&P signs MoU for Cyprus LNG project

07 November, 2013

The Cyprus government signed a Memorandum of Understanding with Total E&P Cyprus B.V. on Thursday for its own production train at the land-based liquefied natural gas (LNG) plant that will be built at the Vassilikos energy hub, some time after 2016.
Already, Houston-based Noble Energy and its Israeli joint venture partners, Delek and Avner, who are operating the first offshore gasfield with estimated average resources of 7 trillion cubic feed of high grade natural gas, have signed an MoU to develop the LNG plant.
In February, Total was awarded exploration and production sharing contracts for blocks 10 and 11 of the Exclusive Economic Zone (EEZ) of the Republic, close to the Israeli gasfields and near Lebanese waters. Total is expected to embark on its first exploration efforts within 2014.
“The MoU records the support of Total for the monetisation of potential natural gas reserves in Blocks 10 and 11 of Cyprus’ EEZ through a variety of options giving priority to liquefaction and LNG export to European and Asian markets,” the Cyprus Ministry of Energy said in an announcement.
“In particular the two parties will cooperate on the feasibility of an onshore LNG plant to be built at Vasilikos with due consideration to Total’s views on the structuring and development of the LNG Project,” it added.
Italy’s ENI and South Korea’s Kogas are also exploring for natural gas deposits within the Cyprus EEZ and have a similar interest to invest in their own production train at the Vasilikos LNG plant.