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Cyprus would seek financing from other countries and companies to help it build energy infrastructure such as a key plant to liquefy natural gas, the country's energy minister said on Wednesday.
Cyprus reported its first natural gas discovery in December, when U.S. based Noble Energy said it had discovered an estimated 5 to 8 trillion cubic feet in a block south of the island.
Israeli firm Delek has suggested that Cyprus build a natural gas liquefaction plant, which would process both Cypriot and Israeli natural gas, discovered in even bigger quantities in nearby waters.
"It's clear that to build such infrastructure, particularly when we talk about a natural gas liquefaction plant, the cost is extremely high," Cypriot idustry and energy minister Neoclis Sylikiotis told the Economist conference in Athens.
"That's why we are seeking a multilateral cooperation with the participation of other important countries, particularly from the region, and also other big energy companies. Our state will have to hold a significant stake in that project because we're talking about strategic infrastructure," he added.
Noble, which has discovered off Israel some of the world's largest off-shore fields of the past decade, wants this issue clarified soon.
"There are proposals, not just from Noble and Delek, but also from other companies, including from China, to finance and support an LNG terminal," Sylikiotis said.
POTS OF GOLD
But plans face diplomatic headwinds. The discovery of off-shore natural gas reserves has sparked competing maritime claims by Turkey, Cyprus, Lebanon and Israel.
Gas discoveries have also raised the stakes in the negotiations over reunification of Cyprus, increasing tensions in the region. Cypriot drilling has angered Turkey, which acts as the protector of the Turkish Cypriot enclave in the island's north. In reaction, Turkey and the Turkish Cypriot administration signed a pact paving the way for exploration.
A senior U.S. official urged on Wednesday all countries in the region to stop quarreling and work together to maximise benefits.
"Voices should be kept low," Richard Morningstar, U.S. Special Envoy for Eurasian energy, told the conference.
"The parties involved need to look carefully at what their interests are … so that everybody can benefit from these pots of gold that are out there in the Mediterranean," Morningstar said.
"This is too much of an opportunity to ultimately let political issues and legal issues mess up the benefit that all of this can have," he added.
