A glimmer of hope in the gas crime thriller: There is a huge natural gas deposit off the coast of Cyprus
Created: 08/19/2022, 11:50 am
By: Patricia Huber
The solution to the gas crisis could lie off the coast of Cyprus.
Large amounts of natural gas are still stored there.
However, several factors hamper the promotion.
Nicosia – The entire EU is currently on a gas austerity course.
Since Russia drastically reduced the delivery volume through the Nord Stream 1 Baltic Sea pipeline, the search for alternative supplier countries has been in full swing.
Cyprus has now also come into focus.
Because in front of the Mediterranean island there is a huge natural gas field.
However, there are still problems that hinder promotion.
Gas crisis: billions of cubic meters of natural gas are stored off Cyprus
Cyprus actually wanted to start extracting natural gas from the field called Aphrodite more than ten years ago.
However, nothing has happened so far, according to the
Handelsblatt
.
But according to estimates, around 130 billion cubic meters are stored in the deposit.
There are also two other gas fields with a total of 380 billion cubic meters of gas.
This means that around 510 billion cubic meters of natural gas are stored off Cyprus.
For comparison: That is more than five times the German gas consumption last year.
But why isn't the gas pumped yet?
After all, gas from an EU country could be the temporary savior in the energy crisis.
But Turkey also plays a role here.
Since the island was divided in two by the Cyprus conflict in 1974, Turkey has been demanding its share of the proceeds.
There is also a lack of transport options.
Because the so-called East Med pipeline, which is supposed to bring gas through Israel and Greece to Italy, cannot be built.
Reason: Turkey has lodged an objection because the pipeline is to run through a sea area that Turkey regards as its own economic zone.
The export as liquid natural gas (LNG) should then serve as a replacement.
Cyprus in a positive mood: "Europe is a good potential buyer"
Despite the existing difficulties, Cyprus is optimistic about using the gas reserves in the not too distant future.
Natasa Pilides, Minister of Energy of Cyprus, said in an interview with
Bloomberg
news agency : "Europe is a good potential buyer for Cyprus gas as the EU has confirmed that natural gas will remain a bridge fuel under the green transition until 2049, so the Companies now have the peace of mind that they can secure long-term contracts.”
Our free business newsletter provides you with all relevant business news on a regular basis. Click here for registration.
Nevertheless, experts are concerned that gas production in Cyprus could be uneconomical.
Lengthy construction projects, such as the East Med pipeline, or simply developing new gas fields are expensive.
It could take more than 20 years for this to pay off, Charles Ellinas, CEO of Cyprus energy consultancy e-CNHC, told
Handelsblatt
.
If the EU continues to slowly move away from natural gas, Cyprus will remain uncertain as to whether such a billion-euro investment in gas production would be worthwhile at all.
(ph)