Nicosia: Energean’s proposed Israel-Cyprus natural gas pipeline presents the most feasible option for delivering gas to Cyprus due to its reliance on established production in Israel and existing infrastructure, Energean CEO Mathios Rigas told the Cyprus News Agency (CNA).
According to Cyprus News Agency, Rigas emphasized that the project is entirely private, with an estimated cost between 350-400 million dollars, and could be completed within 12 months once the necessary permits are granted. The implementation of this project depends on a political decision to open the natural gas market, aiming to offer energy security, competition, stable costs, and a geopolitical boost for Cyprus in the Eastern Mediterranean region.
Rigas highlighted that the Energean proposal is realistic, connecting Cyprus to a reliable and sustainable production base in Israel. The infrastructure, specifically the Energean Power FPSO, has been tested successfully under challenging conditions. The project leverages active production supported by the Karish and Karish North fields, which supply about 50% of Israel’s demand, with the Katlan gas field set to enhance this production by 2027.
Rigas noted that Energean’s proposal complements Cyprus’ national energy projects, such as the Vasilikos terminal and the monetization of Cypriot offshore gas fields. He stated that for Cyprus to maximize its geographical advantage and become an energy hub, all these projects are necessary. He emphasized the need for every available energy source to meet rising demand and potentially supply European markets.
He further mentioned that the era of energy transition is evolving into an era of energy addition, where no viable project or infrastructure is redundant. Energean’s substantial investments in Israel demonstrate market willingness to invest in energy when presented with realistic plans and reliable companies.
The interview also touched on why previous Energean proposals did not advance, citing the government’s designation of the natural gas market as ’emerging,’ which protected the state monopoly of DEFA. Rigas expressed confidence in Energean’s technical capabilities, underscoring that the Israel-Cyprus pipeline remains the fastest route for delivering gas to Cyprus.
Regarding investment costs, Rigas stated that Cyprus would not bear any financial burden. The construction cost for the approximately 200-kilometre pipeline is estimated at 350-400 million dollars, with financial sustainability assured by Energean and Cyfield’s modeling. He pointed to Energean’s pricing model in Israel as evidence of price stability, even during the gas price surge in Europe due to geopolitical tensions.
Rigas underscored the pipeline’s geopolitical significance, noting that gas imports from Israel would bolster Cyprus’ energy security and introduce market competition. The project also aligns with Cyprus’ cleaner energy goals and supports economic growth. Furthermore, the energy cooperation with Israel enhances Cyprus’ strategic role in the Eastern Mediterranean, creating potential new energy corridors.
Lastly, Rigas highlighted Energean’s collaboration with ExxonMobil in the Ionian Sea, which strengthens regional cooperation among Cyprus, Greece, Israel, and the United States. This partnership underscores the urgency of developing domestic fields to drive economic growth and reinforce national sovereignty, aiming to eventually export hydrocarbons to European markets.