The latest gas discovery off Cyprus is not enough to join the EU’s energy plan to make Cyprus less dependent on Russian supplies, says industry expert Charles Elinas. .
A senior fellow at the Atlantic Council’s Global Energy Center acknowledged that recent findings have strengthened his belief in the region’s potential, but Cyprus’ natural gas resources are too small to impact the EU. It is not possible.
He argues that the island will not be in a position to tap untapped reserves for the next six years. 7 years The EU is aiming to cut its emissions by more than half by 2030 and become carbon neutral by 2050.
Earlier in the week, Energy Minister Natatha Pyrides said the discovery of “significant” new gas off Cyprus will help EU member states accelerate commercial exploitation of untapped resources and supply Europe with safe energy. said it would help
She told CyBC national radio that the discovery of 2.5 trillion cubic feet by Eni-TotalEnergies, an Italian-French consortium, would help “create synergies and viable investments” in the island’s energy search.
The gas discovery was made at the Kronos 1 well, 165 kilometers off the southwest coast of Cyprus.
It is located within Block 6 of the Cyprus Exclusive Economic Zone and has “good to excellent quality characteristics”.
Eni drilled an exploration well in the same block that discovered the massive Calypso-1 gas field with an estimated 4.5 trillion cubic feet of gas in 2018.
“At Cronos-1, Cyprus discovered approximately 400 billion cubic meters (bcm) of gas.
“While this discovery is relatively small and important in confirming the gas potential around Block 6, it does not make these numbers more actionable,” Ellinas said.
Not much more can be said, he said, given the small reserves of 2.5 trillion cubic feet, which are no match for Egypt’s 30 cubic feet or Israel’s 20 cubic feet of natural gas.
“But in total, that volume, combined with the findings at Grafkos and Aphrodite, increases to about 13 trillion cubic feet.
“They are in different locations and are more difficult to exploit at this stage.”
Ellinas explained that the EU needs new natural gas resources to bring this online 10 years A transitional stage on the road to a green economy.
“The EU goal is to reduce gas consumption in general, in line with the goal of reducing emissions by 55% by 2030 and reaching net zero by 2050.
“This is also clearly stated in the EU-Egyptian-Israeli MoU, which is only valid until 2030 and will not be valid after that.”
This would discourage investors from investing in developing Cypriot gas solely for the European market.
Elinas argued that just because Cyprus probably can’t meet the block’s natural gas needs, those resources aren’t wasted.
“For Cyprus, the market is in Asia where demand for gas is growing.
“But to do that, we need to remove the geopolitical risks posed by the Turkish threat.”
In other words, the Cyprus issue needs to be resolved to remove the Turkish threat from the balance.
“As long as this risk persists, investors will be deterred from investing the billions of dollars needed to build the facilities they need.”
Elinas said that without a change in EU policy and a resolution of the Cypriot problem, Cypriots have little choice but to wait until they can develop their natural gas reserves.
“I believe in these matters be overcomeOne way or another, by the end of the decade, it will enable the export of Cypriot gas to Asian markets. “
Whether or not Cyprus can meet its unique needs, Ellinas said this is not viable.
“Our needs are too small, about 1 bcm/year. It is impractical to develop gas just for this.
He argued that the state did not have the know-how or the money to invest, as more than 1 billion euros would be required to do such a project.
Ellinas said if this were possible, Cyprus could have enough energy to meet its heating needs for the next 70 years “at very little cost”.
https://www.financialmirror.com/2022/08/28/cyprus-cant-satisfy-eu-gas-needs/ Cyprus unable to meet EU gas demand