EastMed pipeline envisaged to be highly competitive by 2025

EastMed pipeline is envisaged to be highly competitive by 2025 when the project is planned to be ready, as it was pointed out Tuesday after Cyprus, Greece, Israel and Italy signed a Memorandum of Understanding (MoU) in Nicosia on cooperation in relation to the project.

Answering to press questions after the MOU signing ceremony, CEO of IGI Poseidon Elio Ruggeri said that the project should be seen in the economic environment in the time of its realization which in 2025.

Today we are looking at 2025 in terms of realization of the pipeline, so we need to look at the prices in the market at that period of time. The expectation is that in 2025 the project will be ultra-competitive, in connection with the evolution of the price and among the most competitive options for exporting gas from the region to the world gas market, said head of the consortium engaged to develop the project.

He also pointed out that in 2025 the EastMed pipeline will be ready to operate and that the cost is estimated at 5 billion euro to connect to Greece and one additional billion to connect to Italy.

Cyprus Energy Minister Yiorgos Lakkotrypis said that the view of the consortium is that by 2025, there will be both reasonable demand and competitiveness in the price.

He said however that an intergovernmental agreement (IGA) is necessary for creating the necessary political stability over the lifetime of a project, which is usually 20-30 years.

According to the Cypriot Minister, the IGA doesn’t contain any commercial or technical terms, but other government-to-government topics that need to be resolved, such as the jurisdiction of each country or the necessity for environmental or safety permits. The commercial, technical, financial terms will be determined by the consortium and by the markets, he added.

The project as Israels Minister of National Infrastructure, Energy and Water Resources Yuval Steinitz, said looked like a fantasy two years ago because there’s no such a long and deep underwater gas pipeline anywhere else in the world, but now is possible and viable.

As Steinitz said after signing the MOU, Europe must find new sources and additional natural gas for the next 30 or 40 years, since reserves in the Northern sea are declining. He also expressed his satisfaction that the European energy Commissioner was convinced that the best replacement might be the Eastern Mediterranean gas fields in Israel, Cyprus and hopefully in Greece.

He added that the EastMed is a preferable choice because the countries involved are very reliable and the pipeline is underwater, so nobody can sabotage it and it doesn’t has to pass through different districts, countries or municipalities.

This is a wonderful cooperation between four European Mediterranean countries, with the very strong and positive backing of the EU, the European energy Commissioner and I’ m confident that it will be mutually beneficial for Italy, Israel, Greece and Cyprus and for all other countries in Europe and in the region, said the Israeli Minister.

Steinitz also noted that the countries involved in the EastMed project are moving very fast and expressed hope to be able to sign the final intergovernmental agreement possibly in the summer of 2018.

He added that the countries that met in Nicosia want to make this pipeline a reality, the sooner the better.

Israel Minister: We are considering several pipelines to different countries

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Pointing out that Israel is totally committed to this project, Steinitz also said that this is the most challenging but also most promising project for exporting the country’s natural gas, even though they also considering other options.

This should take place, regardless of any other project. There is no collision with other projects, said the Minister.

Asked about Turkey’s potential role, the Israeli Minister said that there are enough natural gas reserves to be exported to different markets and that Israel is considering several pipelines to Egypt and to Turkey, while an onshore pipeline to Jordan is almost completed.

At the same time he said that it is apparent now that the Israeli gas fields hold more gas than originally estimated, by around 10%-20%.

Lakkotrypis: We have completed an important milestone

———————————————————–

The Cypriot Energy Minister said that following what was agreed on the 3 of April of 2017 in Tel Aviv at the first ministerial quadrilateral Summit, Cyprus, Greece, Israel and Italy have on Tuesday concluded a very significant milestone, the signing of the MOU which outlines their political commitment to pursue this project and supported it wholeheartedly.

We consider this project to be a very important pillar in being able to support the security of supply of the EU who is looking for ways to diversify its energy sources, he added.

He also said that they had the opportunity to discuss the status of the project and the consortium was able to present its timelines in order to proceed forward for the more detailed technical studies which are required.

One of the most important elements of the MOU that was signed today, he noted, was the commitment of the four countries to work diligently in order to conclude the necessary intergovernmental agreement which will determine the aspects of the pipeline, the jurisdictions and everything else that is needed in order to make the project possible.

Next quadrilateral meeting in Greece

———————————

Today we are making a major step forward in a project which right from the start, Greece has fully supported, considering it to be strategically very important for Europe Greeces Energy and Environment Minister, Giorgos Stathakis, said at the press conference, while noting EU support to the project.

He also announced that the upcoming third quadrilateral ministerial meeting will be held in Greece, either in Athens or Crete.

This is a major project, for the benefit of all countries involved, Stathakis went on.

He also said that things between the first and the second ministerial meetings moved fast and on schedule and expressed hope that they will keep on with the same pace.

Ambassador of Italy to Cyprus Andrea Cavallari said on his part that Italy confirms its full support to the development and the implementation of the EastMed pipeline project, which it considers strategic, both from a national and regional point of view.

He also said that Italy’s Ministry of Energy, together with the Energy Ministries of Cyprus, Greece and Israel remain committed to cooperate through the Working Group, in view of future developments, with the objective of signing the intergovernmental agreement on EastMed within 2018.

Commenting on the absence at the meeting of Italy’s Minister for Economic Development, Carlo Calenda, the Ambassador said that he was unable to attend, due to unforeseen technical problems and that he asked him to represent him at the meeting and in the signature of the MOU.

Source: Cyprus News Agency

EastMed pipeline envisaged to be highly competitive by 2025

EastMed pipeline is envisaged to be highly competitive by 2025 when the project is planned to be ready, as it was pointed out Tuesday after Cyprus, Greece, Israel and Italy signed a Memorandum of Understanding (MoU) in Nicosia on cooperation in relation to the project.

Answering to press questions after the MOU signing ceremony, CEO of IGI Poseidon Elio Ruggeri said that the project should be seen in the economic environment in the time of its realization which in 2025.

Today we are looking at 2025 in terms of realization of the pipeline, so we need to look at the prices in the market at that period of time. The expectation is that in 2025 the project will be ultra-competitive, in connection with the evolution of the price and among the most competitive options for exporting gas from the region to the world gas market, said head of the consortium engaged to develop the project.

He also pointed out that in 2025 the EastMed pipeline will be ready to operate and that the cost is estimated at 5 billion euro to connect to Greece and one additional billion to connect to Italy.

Cyprus Energy Minister Yiorgos Lakkotrypis said that the view of the consortium is that by 2025, there will be both reasonable demand and competitiveness in the price.

He said however that an intergovernmental agreement (IGA) is necessary for creating the necessary political stability over the lifetime of a project, which is usually 20-30 years.

According to the Cypriot Minister, the IGA doesn’t contain any commercial or technical terms, but other government-to-government topics that need to be resolved, such as the jurisdiction of each country or the necessity for environmental or safety permits. The commercial, technical, financial terms will be determined by the consortium and by the markets, he added.

The project as Israels Minister of National Infrastructure, Energy and Water Resources Yuval Steinitz, said looked like a fantasy two years ago because there’s no such a long and deep underwater gas pipeline anywhere else in the world, but now is possible and viable.

As Steinitz said after signing the MOU, Europe must find new sources and additional natural gas for the next 30 or 40 years, since reserves in the Northern sea are declining. He also expressed his satisfaction that the European energy Commissioner was convinced that the best replacement might be the Eastern Mediterranean gas fields in Israel, Cyprus and hopefully in Greece.

He added that the EastMed is a preferable choice because the countries involved are very reliable and the pipeline is underwater, so nobody can sabotage it and it doesn’t has to pass through different districts, countries or municipalities.

This is a wonderful cooperation between four European Mediterranean countries, with the very strong and positive backing of the EU, the European energy Commissioner and I’ m confident that it will be mutually beneficial for Italy, Israel, Greece and Cyprus and for all other countries in Europe and in the region, said the Israeli Minister.

Steinitz also noted that the countries involved in the EastMed project are moving very fast and expressed hope to be able to sign the final intergovernmental agreement possibly in the summer of 2018.

He added that the countries that met in Nicosia want to make this pipeline a reality, the sooner the better.

Israel Minister: We are considering several pipelines to different countries

———————————————————————————-

Pointing out that Israel is totally committed to this project, Steinitz also said that this is the most challenging but also most promising project for exporting the country’s natural gas, even though they also considering other options.

This should take place, regardless of any other project. There is no collision with other projects, said the Minister.

Asked about Turkey’s potential role, the Israeli Minister said that there are enough natural gas reserves to be exported to different markets and that Israel is considering several pipelines to Egypt and to Turkey, while an onshore pipeline to Jordan is almost completed.

At the same time he said that it is apparent now that the Israeli gas fields hold more gas than originally estimated, by around 10%-20%.

Lakkotrypis: We have completed an important milestone

———————————————————–

The Cypriot Energy Minister said that following what was agreed on the 3 of April of 2017 in Tel Aviv at the first ministerial quadrilateral Summit, Cyprus, Greece, Israel and Italy have on Tuesday concluded a very significant milestone, the signing of the MOU which outlines their political commitment to pursue this project and supported it wholeheartedly.

We consider this project to be a very important pillar in being able to support the security of supply of the EU who is looking for ways to diversify its energy sources, he added.

He also said that they had the opportunity to discuss the status of the project and the consortium was able to present its timelines in order to proceed forward for the more detailed technical studies which are required.

One of the most important elements of the MOU that was signed today, he noted, was the commitment of the four countries to work diligently in order to conclude the necessary intergovernmental agreement which will determine the aspects of the pipeline, the jurisdictions and everything else that is needed in order to make the project possible.

Next quadrilateral meeting in Greece

———————————

Today we are making a major step forward in a project which right from the start, Greece has fully supported, considering it to be strategically very important for Europe Greeces Energy and Environment Minister, Giorgos Stathakis, said at the press conference, while noting EU support to the project.

He also announced that the upcoming third quadrilateral ministerial meeting will be held in Greece, either in Athens or Crete.

This is a major project, for the benefit of all countries involved, Stathakis went on.

He also said that things between the first and the second ministerial meetings moved fast and on schedule and expressed hope that they will keep on with the same pace.

Ambassador of Italy to Cyprus Andrea Cavallari said on his part that Italy confirms its full support to the development and the implementation of the EastMed pipeline project, which it considers strategic, both from a national and regional point of view.

He also said that Italy’s Ministry of Energy, together with the Energy Ministries of Cyprus, Greece and Israel remain committed to cooperate through the Working Group, in view of future developments, with the objective of signing the intergovernmental agreement on EastMed within 2018.

Commenting on the absence at the meeting of Italy’s Minister for Economic Development, Carlo Calenda, the Ambassador said that he was unable to attend, due to unforeseen technical problems and that he asked him to represent him at the meeting and in the signature of the MOU.

Source: Cyprus News Agency