The government does not share the statements of Eni CEO Claudio Descalzi on the East Med pipeline, Energy, Commerce and Industry Minister George Papanastasiou said on Saturday. He also described the proposal to transport Eastern Mediterranean gas through Cyprus as the “East Med corridor”, which includes the creation of a natural gas pipeline between Israel and Cyprus and its subsequent distribution in liquefied form via LNG ships.
In a statement to CNA, the Energy Minister described the recent statement by Claudio Descalzi in the Foreign Affairs Committee of the Italian Parliament, that without the consent of Turkey the project cannot be implemented, as an opinion of a private entity, adding that there are many other companies before which this solution exists, as there is the solution for Egypt for the Eastern Mediterranean fields and the solution recently put forward by Cyprus, namely liquefaction on the island and transport by ships to European markets.
“The decision on how this pipeline will actually be implemented will be based on a techno-economic study, certainly it touches on geopolitical issues, where according to Mr. Descalzi’s judgment Turkey’s agreement is needed, a view which we as a government do not share,” he stressed.
Asked whether these statements call into question Eni’s presence in the projects to be developed in the region, Papanastasiou replied in the negative, adding that where there is energy wealth there are different perceptions.
He added that Eni has previously stated through Descalzi that Turkey should be part of the arrangements that are being made in Cyprus, but reiterated that the Cypriot government does not share this view, stressing that decisions on the solutions for the transfer of natural gas from the Eastern Mediterranean to the markets, as an alternative for Europe’s autonomy from Russia, will be taken by private companies and investors. “Eni may express one opinion, some other companies say something different,” he added.
Responding to a question about the prospect of a “virtual” East Med, Papanastasiou said that the transportation of natural gas from point A to point C can be done through a point B called Cyprus, adding that this can be done either through a pipeline, as in the case of East Med, or through the solution recently proposed by Cyprus and adopted by Israel, whereby natural gas is transported by a subsea pipeline to Cyprus and liquefied and transported by LNG ships to Europe, describing the proposal as an “East Med corridor”.
Asked if Cyprus’ plans are affected by different views of companies, the Energy Minister replied “not at all”, adding that East Med was a public utility project funded by the European Commission, worth several billion euros and 1900 km long, while the solution recently put forward by Cyprus is more realistic as it is a smaller project, it will be implemented much earlier and it follows the same corridor, since gas from the Eastern Mediterranean will reach European markets in liquefied form.
Asked if East Med as a physical pipeline tends to be abandoned as an idea, Papanastasiou said there is still the section between Israel and Cyprus, which may well be the first phase of East Med, adding that the second phase from Cyprus to Greece may be decided at a later stage.
“What we are proposing with the new alternative is essentially an East Med, the first phase of which ends in Cyprus, and until it is implemented, if it has to be implemented and is techno-economically justified, then it stops at liquefaction and goes back to the pipeline, which is unlikely since the liquefaction is done in Cyprus and the LNG can be transported to any market, while the pipeline will only end at one point,” he said.
Asked whether there is still a dimension of utilising East Med for hydrogen transportation, the Energy Minister said that any pipeline construction should include hydrogen transportation specifications, as natural gas is a transitional product, while the final destination is greener products, such as renewable energy and hydrogen.
“Therefore, if we consider the alternative we are putting on the table as the first phase of East Med, it goes without saying that what applies to East Med will also apply to the pipeline connecting Israel and Cyprus,” Papanastasiou concluded.
Source: Cyprus News Agency