* Wants Cyprus gov’t to expedite plans at Vassiliko; Chuck Davidson to visit Israel
Noble Energy, operator of the exploration license for natural gas and oil in Block 12 south east of the Cyprus coast, is keen to go ahead with plans to build an onshore liquefaction plant in partnership with the Cyprus government in order to process the output of all offshore gasfields.
Charles Davidson, chairman and CEO of Houston-based Noble, believes that liquid natural gas (LNG) is “the most viable option” to export the fuel, not a pipeline, as the product would reach the liquefaction plant at Vassiliko from where it would be loaded on ships and exported.
Davidson said that his company has asked the Cyprus government to expedite the process by allowing an additional partner to join the venture, similar to a deal already concluded in Israel with Australian operator Woodside, and to proceed with a commercialisation framework for the multi-million terminal.
“A site has already been identified that will be able to accommodate multiple trains” from other license operators, such as Total, ENI and Kogas.
“With the right site and the right port, shipping of LNG can start with benefits to all,” Davidson said, adding that Cyprus has shown greater commitment to such a terminal, rather than Israel, that has yet to identify a location.
Noble determined an initial estimate of 5-8 trln cubic feet of natural gas in the ‘Aphrodite’ Block 12 within the Cyprus Exclusive Economic Zone, adjacent to Israel’s Leviathan gasfield which is believed to hold record amounts of natural gas reserves, estimated at 37 tcf.
Noble has already started production at the nearby Tamar field and considers these three gasfields as its top priorities.
A drilling platform is expected to conclude its work at another Israeli gasfield and will make its way to Aphrodite some time in June to conduct a second appraisal well with the first result some 75 to 90 days after that. Date will then be collected and computed into various models that will take another 60 to 90 days to complete. Thus, a real picture of Cyprus’ natural gas wealth, at least in Block 12, will not be known until October.
In the meantime, Davidson said that data so far has determined that the appraisal well would either confirm reserves at 25% less than the 5 tcf estimate or 25% more than the upper end of 8 tcf.
Whatever the case, Cyprus will not need any more than 1 tcf of natural gas for all its needs, so, the remainder from Block 12, as well as other blocks will be destined for export.
Noble wants to see some sort of cooperation with Israel to jointly utilise the infrastructure, such as the liquefaction terminal at Vassiliko, for which Israeli investors have also shown interest.
“The bigger, the better. Scale is your friend in LNG,” Davidson said, adding that such a terminal would need four years to build, maybe three.
Meanwhile, foreign minister Ioannis Kasoulides, who was in Tel Aviv on Tuesday, said the Cypriot government is continuing talks with Israel on ways to jointly exploit their mineral reserves.
One option is to pipe the gas onshore to Vassiliko, with the pipelines and liquefaction plant expected to be in place by 2019-20 at a cost of about 10 bln euros.
Kasoulides said it remains to be seen whether Israel wants to be part of Cyprus’ energy plans, but that the construction of the plant “will take place anyhow.”
What Are Cookies
As is common practice with almost all professional websites, our site uses cookies, which are tiny files that are downloaded to your device, to improve your experience.
This document describes what information they gather, how we use it and why we sometimes need to store these cookies. We will also share how you can prevent these cookies from being stored however this may downgrade or ‘break’ certain elements of the sites functionality.
How We Use Cookies
We use cookies for a variety of reasons detailed below. Unfortunately, in most cases there are no industry standard options for disabling cookies without completely disabling the functionality and features they add to the site. It is recommended that you leave on all cookies if you are not sure whether you need them or not, in case they are used to provide a service that you use.
The types of cookies used on this website can be classified into one of three categories:
- Strictly Necessary Cookies. These are essential in order to enable you to use certain features of the website, such as submitting forms on the website.
- Functionality Cookies.These are used to allow the website to remember choices you make (such as your language) and provide enhanced features to improve your web experience.
- Analytical / Navigation Cookies. These cookies enable the site to function correctly and are used to gather information about how visitors use the site. This information is used to compile reports and help us to improve the site. Cookies gather information in anonymous form, including the number of visitors to the site, where visitors came from and the pages they viewed.
Disabling Cookies
You can prevent the setting of cookies by adjusting the settings on your browser (see your browser’s “Help” option on how to do this). Be aware that disabling cookies may affect the functionality of this and many other websites that you visit. Therefore, it is recommended that you do not disable cookies.
Third Party Cookies
In some special cases we also use cookies provided by trusted third parties. Our site uses [Google Analytics] which is one of the most widespread and trusted analytics solutions on the web for helping us to understand how you use the site and ways that we can improve your experience. These cookies may track things such as how long you spend on the site and the pages that you visit so that we can continue to produce engaging content. For more information on Google Analytics cookies, see the official Google Analytics page.
Google Analytics
Google Analytics is Google’s analytics tool that helps our website to understand how visitors engage with their properties. It may use a set of cookies to collect information and report website usage statistics without personally identifying individual visitors to Google. The main cookie used by Google Analytics is the ‘__ga’ cookie.
In addition to reporting website usage statistics, Google Analytics can also be used, together with some of the advertising cookies, to help show more relevant ads on Google properties (like Google Search) and across the web and to measure interactions with the ads Google shows.
Learn more about Analytics cookies and privacy information.
Use of IP Addresses. An IP address is a numeric code that identifies your device on the Internet. We might use your IP address and browser type to help analyze usage patterns and diagnose problems on this website and to improve the service we offer to you. But without additional information your IP address does not identify you as an individual.
Your Choice. When you accessed this website, our cookies were sent to your web browser and stored on your device. By using our website, you agree to the use of cookies and similar technologies.
More Information
Hopefully the above information has clarified things for you. As it was previously mentioned, if you are not sure whether you want to allow the cookies or not, it is usually safer to leave cookies enabled in case it interacts with one of the features you use on our site. However, if you are still looking for more information, then feel free to contact us via email at [email protected]