New natural gas deposit discovered off Cyprus: glimmer of hope in the gas crisis?
Created: 08/24/2022, 11:17 am
By: Patricia Huber
The solution to the gas crisis could lie off the coast of Cyprus.
A consortium of Eni and Total has now discovered another large gas field there - much to the delight of the Cyprus Energy Minister.
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 there are huge natural gas fields in front of the Mediterranean island.
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 producing 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.
A few days ago, the discovery of another gas field became known.
This was announced by Cyprus Energy Minister Natasa Piledou on state radio (RIK).
The Italian-French energy consortium Eni-Total made the discovery during research work.
According to the minister, the gas field will contain around 70 billion cubic meters of good quality natural gas.
Italy's state-owned energy supplier Eni spoke in a statement of an "important find" at a depth of 2,287 meters, around 160 kilometers from the coast of Cyprus.
The Italian newspaper
La Repubblica
saw this as important news for Italy's energy policy.
There are huge natural gas deposits off the coast of the Mediterranean island of Cyprus.
(Iconic image) © IMAGO / Panthermedia
Turkey blocks natural gas production off Cyprus
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.
also read
“Significant risk for customers”: boom in counterfeit car parts – manufacturers launch a counterattack
“Half-baked, completely unfair”: The first group boss is harsh on the gas surcharge
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.
However, experts are still 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)
