A possible agreement between Greek Cypriots and Turkish Cypriots, ending the 41-year-old conflict that divided the Mediterranean island, could also pave the way for natural gas exports to Europe, a Nicosia-based industry executive has said.
Cyprus Natural Hydrocarbons Company CEO Charles Ellinas told New Europe on June 10 that given the difficulties Cyprus’ Aphrodite and Israel’s Leviathan fields are facing to export their gas to BG’s LNG plant at Idku in Egypt, the Israelis may look for other options.
“If they don’t sell gas to Egypt they have to find other markets otherwise Leviathan will sit there without being produced. So they have then two good options. One would be the pipeline through Turkey to Europe which may go through Cyprus EEZ [Exclusive Economic Zone] if the Cyprus problem is resolved and if – too many ifs – if the political problems between Israel and Turkey are resolved,” Ellinas said on the sidelines of the “Hydrocarbon Exploration and Production in Greece and the East Mediterranean” conference organised by the Institute of Energy for South-East Europe (IENE).
“We’re in a strange situation. I have more hope that the Cyprus problem will be resolved; I have no hope that (Israeli Prime Minister Benjamin) Netanyahu and (Turkish President Tayyip) Erdogan will agree,” he said, adding that tense relations between Ankara and Tel Aviv stand in the way of what otherwise would be an obvious choice for a pipeline.
“I mean it will help us as well because if they build the pipeline from Leviathan to Turkey and through Turkey to Europe, it’s good for us to join it. We can send the Aphrodite gas through the same pipeline because sending the Aphrodite gas through Turkey on its own is not going to be commercially viable,” Ellinas said.
The second option would be to export the gas from the Leviathan and Aphrodite fields directly to a facility that would be set up in Vassilikos, in southern Greek Cyprus. “Aphrodite gas is not enough to make it commercially viable. You bring Leviathan gas to Cyprus and then it’s a great chance,” Ellinas said. “There are no other gas fields. We only have Aphrodite so that’s our limitation at the moment. But a combination of Aphrodite and Leviathan is more than enough gas to support Vassilikos,” he added.
Turning back to the talks between Greek Cypriots and Turkish Cypriots, Ellinas said he is optimistic that the Cyprus problem will be resolved. “If you look at everything happening in Cyprus right now it’s amazing,” he said.
He referred to the recent efforts the two leaders — Nicos Anastasiades, the 69-year-old president of the internationally-recognised Republic ofCyprusand the 67-year-old leader of the breakaway Turkish Cypriots, Mustafa Akinci — made to bridge differences, including attending a theatre play recently and sharing local appetizers at Turkish and Greek Cypriotcafes last month.
“I saw them when they went for their walkabout in Nicosia. I was actually sitting almost next to the table where they sat and had their coffee and I saw the expression on their faces when they were cheering each other and drinking and they were like buddies. It’s a good start,” Ellinas said.
http://www.neurope.eu/article/unified-cyprus-eus-natural-gas-path/