Energean CEO: New $400 million Israel to Cyprus gas pipeline is awaiting approval from government
The head of Eastern Mediterranean gas producer Energean said on Tuesday that a $400 million pipeline will transport natural gas between Israel and Cyprus. Israel has also expressed its support.
Energean signed on Monday a letter-of-intent with Cyfield, the leading Cypriot energy and industrial group, for the possible supply of natural gases from Israel via the new pipeline to Cyfield’s planned power station, according to Mathios Rigas, CEO of British firm.
Rigas said in an interview at the ADIPEC conference in Abu Dhabi that gas could be flowing through the pipeline in 12 months after the approvals are granted by the government. Energean awaits a response from Cypriot officials, he said.
CAPACITY OF 1 BILLION CUBIC METERS
The pipeline has a capacity of one billion cubic metres per year. This is enough to supply all the gas needed for the Cyfield Project, and also more gas to the island, if other users need the gas," Rigas stated.
Rigas stated that Energean could fund the project in its entirety, or bring in partners at a later date.
Rigas added that the company is also evaluating potential in West Africa.
Energean also awaits government approvals on another gas supply agreement from Israel to Egypt. Israel hasn't yet approved this deal. The company has signed a 15 year transmission agreement with the Nitzana pipeline for which some of the gas will be transported.
The pipeline will ease Egypt's energy crisis. Egypt has spent billions on the import of liquefied gas. It is also part of an effort to increase Israeli gas exports into the Arab World's largest nation.
In October, the company signed a transmission contract for 15 years as part of a $4 billion deal to purchase Israeli gas.
DEAL ON GAS SUPPLY BETWEEN EGYPT AND ISRAEL SUBJECTED TO GOVERNMENTS
Rigas, in commenting on the delay of the Egypt agreement, said that the issue is between the governments of both countries and not the business partners.
He said that it was up to the Israeli and Egyptian government to decide on what could happen.
Israeli media reported that Israel's energy minister Eli Cohen said he held up approval of the $35 billion gas contract to ensure better commercial terms for Israel's market.
Rigas stated that he is still confident that obstacles can be removed.
Rigas stated, "I think that the barriers will be removed as it is logical to build infrastructure for gas transport in the East Mediterranean."
"I've already paid $47million. "It would be a bad decision if I did not have confidence," he said. (Reporting and writing by Sarah El Safty, Editing by Conor Humphries).
(source: Reuters)