search

Minister: Chevron ‘positive’ about Israeli-Cypriot plans for natural gas pipeline

VP of oil company tells Nicosia he wants to hear views of other energy firms attending gathering next week where Cypriot gov’t will formally pitch plan to secure investor backing

Illustrative: People on the beach take photos of the 'Tungsten Explored' drilling ship, in the southern coastal city of Larnaca, Cyprus, on November 3, 2021. (AP Photo/Petros Karadjias, File)
Illustrative: People on the beach take photos of the 'Tungsten Explored' drilling ship, in the southern coastal city of Larnaca, Cyprus, on November 3, 2021. (AP Photo/Petros Karadjias, File)

NICOSIA, Cyprus — Oil and gas company Chevron is “positive” about an Israeli-Cypriot plan for a pipeline that would convey offshore natural gas from both countries to Cyprus where it would be liquefied for export by ship to Europe and elsewhere, an official said Friday.

Cypriot Energy Minister Giorgos Papanastasiou said after talks with visiting Chevron Vice President for Exploration and Production Frank Cassulo that the company also wants to hear the views of other energy firms attending a gathering next week where the Cypriot government will formally pitch the plan in order to secure investor backing.

Chevron has presented the Cypriot government with a plan to develop its Aphrodite deposit in waters south of the island, first discovered in 2011 and estimated to contain 4.2 trillion cubic feet of the hydrocarbon.

Papanastasiou also pointed to recent statements by a senior ExxonMobil executive who said the oil and gas company is interested in Israeli-Cypriot plans. ExxonMobil holds exploration licenses for two of Cyprus’ 13 areas — or blocks — that comprise its exclusive economic zone. The company has already discovered one sizable gas deposit and prospects for more discoveries look “promising.”

Papanastasiou told The Associated Press last week that at least two major oil and gas companies — apart from Chevron — have expressed interest in the plan that aims to spur additional prospecting, expedite the deposits’ development and ensure adequate gas quantities for Cyprus to wean itself off imported oil and slash energy generation costs.

France’s Total and Italy’s Eni are also partners in a consortium holding exploration licenses for seven blocks.

Next week’s workshop will bring together all companies involved in hydrocarbon exploration off Cyprus, as well as pipeline and liquefaction plant manufacturers, investors and other high-tech firms, including Israeli companies.

The pipeline-liquefaction plant project’s key drawing card is its low cost relative to other exporting methods, enabling companies to recover their initial investment and turn a profit much quicker.

The roughly 320-kilometer (200-mile) pipeline is estimated at 450 million euros ($489 million) and the liquefaction plant at 1 billion euros ($1.1 billion).

read more:
Never miss breaking news on Israel
Get notifications to stay updated
You're subscribed
image
Register for free
and continue reading
Registering also lets you comment on articles and helps us improve your experience. It takes just a few seconds.
Already registered? Enter your email to sign in.
Please use the following structure: [email protected]
Or Continue with
By registering you agree to the terms and conditions. Once registered, you’ll receive our Daily Edition email for free.
Register to continue
Or Continue with
Log in to continue
Sign in or Register
Or Continue with
check your email
Check your email
We sent an email to you at .
It has a link that will sign you in.