Cyprus to build gas plant with or without Israel

Debt-ridden island hopes gas revenues can help pull it out of precipitous debt crisis

3 April 2013, 11:27 pm

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The Tamar gas rig, located 23 kilometers (14 miles) west of the city of Haifa in northern Israel. (AP/Albatross Aerial Perspective)

NICOSIA, Cyprus (AP) — Cyprus’ foreign minister says the nation’s offshore natural gas deposits are enough to warrant the construction of a gas processing plant to export excess supply, regardless of whether Israel decides to be a partner in the project.

Ioannis Kasoulides told The Associated Press on Wednesday that the oil and gas companies which are licensed to search for mineral deposits off the island nation’s southern coast will spearhead the infrastructure construction. One field is estimated to hold 5-8 trillion cubic feet (140-230 billion cubic meters) of gas.

Kasoulides said potential gas revenue expected by 2019-20 will be shared with breakaway Turkish Cypriots after an agreement to reunify the ethnically split country is reached.

Debt-ridden Cyprus hopes its future gas wealth will help pull it out of its economic crisis.