The tense situation in Ukraine, which is an important transit country for Russian gas to Europe, and further political destabilisation underscores the East Mediterranean’s role as an alternative energy source to Europe, Greece’s Minister of Shipping, Maritime Affairs and the Aegean Miltiadis Varvitsiotis told New Europe on 7 April. Greece has been holding the rotating presidencyof theEUfor the first half of 2014.
Speaking on the sidelines of the 1st Mare Forum Oil and gas Europe 2014 at a resort south of Athens, he said that an ongoing Israeli, Greek and US naval exercise off the southern coast of Cyprus, which includes simulation of attack on offshore natural gas platforms and is expected to wrap up on 10 April, highlights “the increased level of co-operation among these countries.” Varvitsiotis said that the naval drill “ensures the security of oil and gas platforms and future pipelines,” preventing terrorist acts.
The minister said there is an increased level of political and energy co-operation between Greece, Cyprus and Israel.
Varvitsiotis also said that a digital map of the Mediterranean seabed expected by 2015 under the EU framework could be a tool for future pipeline networks.
Meanwhile, Solon Kassinis, former executive vice president of the Cyprus National Hydrocarbons Company, told New Europe on the sidelines of the same forum that “it is in Europe’s interest to look for alternative ways to import natural gas and the East Mediterranean is definitely one of these alternative routes”.
He added that Cyprus’ liquefied natural gas (LNG) project would be a new source of gas within Europe would contribute to energy security, providing an alternative to Russian gas supplies.
“What we’ve been doing with ENI-Kogas and Total, we plan to have six wells in the next year or so and these will push up the process,” he said, adding that “all these new findings they are going to substantially promote this idea that Europe should be the prime destination”.
Cyprus and Israel can provide alternative energy supplies to the EU, Kassinis said. “Lebanon as well as Israel can join forces with our LNG,” he said.
For his part, RINA President and CEO Ugo Salerno told New Europe at the same venue that a potential disruption of gas supplies through Ukraine shows how vulnerable is the system that brings gas through pipelines. Salerno said a “real mix” of pipelines and long-distance transportation through LNG is needed because “we cannot take the risk of being short of this kind of commodity. So this crisis is putting more interest on sea transport, LNG and regasification terminals”.
Turning to the Mediterranean, Salerno said, “We see that there is a lot of gas around Cyprus and close to Israel so, of course, it will be developed and extracted but it’s not only Mediterranean”.
Leo Drollas, Director and Chief Economist for the Centre of Global Energy Studies (CGES) in London, toldNew Europein Vouliagmeni that the Mediterranean is an area that has potential. He noted that there are a lot of smaller companies who would like to invest – not just the super-majors.
Turning to Croatia and Montenegro which have also declared their interest to explore their offshore fields, Drollas said that “there is a potential along the Adriatic line which goes into Italy, the Apennines. There is geologically potential from the structure of the formation. So you can understand why these countries want to go into these areas and open up in order to help their economies. And the same for Greece; for the Greek economy it is essential”.