Energean Applies to Supply Cyprus with Gas
London-listed Energean Oil & Gas has filed an application with authorities in Cyprus to supply gas to the island nation from the Karish field off the coast of Israel starting in 2021.
The Mediterranean-focused explorer has already submitted development plans to build a pipeline that would make these deliveries possible. The 215-km pipeline would make landfall at the Cypriot port of Vassiliko.
Cyprus currently burns diesel to generate its electricity, but wants to transition to gas to reduce pollution and cut costs.
“Energean’s proposal offers the Republic of Cyprus the option to switch to natural gas as soon as possible, and under the most competitive terms,” the company’s CEO Mathios Rigas said. “Execution of the proposal will bring competition to the Cypriot natural gas market, decrease energy costs across the economy and result in enhanced diversity and security of supply.”
Due online in 2021, Energean’s Karish project is expected to produce up to 8bn m3/yr of gas, some of which it is seeking to export. The company said it would cover the cost of building the pipeline to Cyprus, which it estimated at around $350mn.
Cyprus is also looking to meet its gas needs with LNG. In August it awarded a Chinese-led consortium a contract to supply a floating storage and regasification unit for these imports.