Final decision on Cyprus natural gas supply next two weeks

The Cyprus government is expected to take a final decision over the next two weeks regarding the interim solution for the supply of natural gas to the island and the subsequent reduction of the cost of electricity.

Energy Minister Giorgos Lakkotrypis said after a meeting with President Nicos Anastasiades and other state energy officials,

“A final effort will be made to make sure that we have not missed an opportunity to substantially reduce the price of electricity and I expect that soon the issue will be concluded”, he said.

Earlier this year, the state-owned the Natural Gas Public Company (DEFA) awarded a tender for the import of natural gas from 2015 to 2018 to the Russian company ITERA.

The Cyprus government has already signed a memorandum of understanding with Houston-based Noble Energy and its Israeli partners, Delek and Avner, to develop an onshore LNG processing plant that would allow for exports of natural gas from the Cyprus offshore gasfields after 2018.

France’s Total and the Italy-South Korean joint venture ENI/Kogas have also shown an interest to develop a second and third train at the LNG plant near Vasilikos, with opportunities for the liquefaction and export of natural gas finds from the nearby Israeli and Lebanese offshore gasfields, adjacent to the Cyprus Exclusive Economic Zone.

Noble is currently drilling a second appraisal well to confirm the average 7 trln cubic feet of natural gas reserves it found in Block 12 of the Cyprus EEZ, while Total and ENI said they will both start exploration drilling in their fields in the second half of 2014.