ENERGY: Energean seeks Cyprus approval to import Israeli gas via new pipeline

 Greece’s Energean is seeking approval from Cyprus to build a pipeline from its Israeli offshore gas fields and import 0.5 to 1 billion cubic meters of gas a year to the island.

But Cyprus’ Natural Gas Public Company (Defa) said the Greek firm had not gone through the proper channels, describing its proposal as unsolicited.

Defa chairman Simeon Kassianides said Energean’s proposal was not submitted as part of a call for tender, which has yet to happen.

Under Cyprus law, Defa is the exclusive importer of natural gas to the island and says it plans to issue a call for tenders to import gas “in the near future”.

Energean, which listed on London’s main stock exchange this year, has committed $1.6bn to Israel’s Karish and Tanin fields with potential reserves of 2.4 trillion cubic feet of natural gas and 32.8 million barrels of light oil and condensate.

It estimates the five blocs it owns around Karish and Tanin contain an additional 5 trillion cubic feet of gas.

“We submitted a proposal to sell gas from the FPSO (Floating Production Storage and Offloading facility) to Cyprus. We sent it last week,” CEO Mathios Rigas told Reuters.

The company has signed gas supply agreements in Israel for about 4.2 billion cubic meters of gas a year.

Energean is positioning itself in the eastern Mediterranean with a newly built FPSO facility with capacity of 800 million cubic feet a day and liquids capacity of 800,000 barrels.

It wants to build a 200 km (124 miles) pipeline from the FPSO to Cyprus.

Energean will also bid for further supply contracts in Israel, which is privatizing a gas-run power plant in Alon Tavor, and additional contracts once the country switches from coal to gas plants by 2022, Rigas said.

Nicosia is planning to build a gas pipeline with Israel and Greece to export gas to Europe and is looking to do a deal with Egypt also.