NICOSIA: The recently announced estimates for natural gas reserves at the “Electra” field in Block 5 of Cyprus’ Exclusive Economic Zone (EEZ) are significant, according to energy expert Dr. Charles Ellinas. Speaking to CNA on Thursday, Dr. Ellinas advised patience, as he believes that Exxon Mobil, which holds exploration rights for the block, is unlikely to initiate liquefied natural gas (LNG) exports from Cyprus’ EEZ in the immediate future.
According to Cyprus News Agency, Dr. Ellinas noted that the prospects in Block 5 are promising, suggesting that a major discovery might occur by 2025. However, he cautioned against expecting rapid developments, highlighting Exxon Mobil’s cautious approach to project advancement. The company is anticipated to take its time before proceeding to subsequent stages.
Dr. Ellinas explained that Exxon Mobil is focused on identifying large reserves and has plans to construct LNG export terminals. He posited that if reserves in the range of 15 to 30 trillion cubic feet are found, the company might consider exporting LNG using resources from the “Glafkos” field and potentially other ENI fields. However, he emphasized that such developments are not expected within the next one to two years.
The expert further elaborated that Exxon Mobil intends to enhance global LNG production and export, with a significant discovery in Cyprus contributing to this objective. Additionally, the company plans to conduct drilling at the “Pegasus” field in Block 10, where prospects are also considered favorable.
Dr. Ellinas underscored the importance of bringing natural gas to Cyprus’ Vasilikos terminal, advocating for expedited efforts to achieve this goal, potentially by the end of 2025. He cited the potential for a 35-40% reduction in electricity prices if natural gas reaches Cyprus, emphasizing the project’s significance for the country and its independence from third-party influences.