Tuesday, October 3, 2023
 
 

Total eyes EU hydrocarbon exports from Cyprus, Greece

Discovery of Egypt's Zohr opened up the possibility of more discoveries in carbonate formations

- Advertisement -

Total is reportedly preparing to make an exploratory marine drilling off Cyprus. The French energy major is also in talks with the Greek government to explore for hydrocarbons in the Ionian Sea, a source at the French Foreign Ministry said. A delegation from Total visited Greece in January and met with representatives of Greece’s Environment and Energy Ministry.

Total, along with Italy’s ENI and US energy giant ExxonMobil was awarded licenses for hydrocarbons exploration by Cyprus in December.

Total reportedly plans to drill in block 11 of Cyprus’ Exclusive Economic Zone, which shares a boundary to the south with the huge Egyptian Zohr natural gas well. Nicosia and Cairo signed a framework agreement last August for the transfer of natural gas discovered by US company Noble Energy via pipeline to Egypt’s liquefaction terminals.

Asked if the massive Zohr deposit, the largest ever field discovered in the eastern Mediterranean, could affect negatively the export of hydrocarbons from Cyprus and Greece, Cyprus Natural Hydrocarbons Company CEO Charles Ellinas told New Europe on January 27 that Zohr is destined for the Egyptian domestic market. Some of it may be exported as liquefied natural gas (LNG). “It has affected Cyprus in that Cyprus was hoping to sell its gas to Egypt both for the domestic market and for liquefaction and export to Europe as LNG. This has now gone away because of commercial factors but also because of Zohr,” Ellinas said.

On the other hand, he added, the discovery of Zohr opened up the possibility of more discoveries in carbonate formations. “Total is drilling mid-2017 in block 11, adjacent to Zohr, and there are reasonable indications for a gas discovery,” he said.

Asked if both Greek and Cyprus hydrocarbons could be jointly exported to Europe and if they do need Israel as well, Ellinas noted that the problem for Cypriot and Israeli gas is commercial. “By the time it reaches Europe, by pipeline or as LNG, it is to expensive to compete with gas prices prevailing in Europe, particularly Russian gas. And these prices will be there for the longer term – at least to 2025,” he said, adding that if gas discoveries are made in Greece they will have a better chance. It is closer to Europe and by then there will be infrastructure in place to transport it.

Government representatives from Italy, Greece, Cyprus and Israel plan to meet in February to discuss a natural gas pipeline from the east Med fields to Greece and Italy, according to a report in Globes, cited by Natural Gas World.

Ellinas told New Europe that at BP’s presentation of the Energy Outlook to 2035 it was clear that with the fast changing energy landscape not all discovered hydrocarbons would be consumed even by 2050.

“This means that increasingly there will be strong competition between producers to capture this more limited market. As a result only cheaper resources will be able to be developed, produced and sold. More costly resources will find it difficult to compete and increasingly run the risk of remaining stranded. Cyprus and Israeli gas runs this risk,” he said.

“We are already observing this with both oil and gas. And this is one of the reasons prices are very likely to remain low for the longer term,” Ellinas said.

follow on twitter @energyinsider

- Advertisement -

Subscribe to our newsletter

Co-founder / Director of Energy & Climate Policy and Security at NE Global Media

Latest

Iran protesters mark anniversary of “Bloody Friday”

Residents in the southeastern Iranian province of Sistan and...

US announces Israel’s acceptance into the Visa Waiver Program

Israeli citizens will be allowed visa-free entry into the...

UN General Assembly 2023: More progress urgently needed on Sustainable Development Goals

The 78th United Nations General Assembly (UNGA) kicked off...

Don't miss

Iran protesters mark anniversary of “Bloody Friday”

Residents in the southeastern Iranian province of Sistan and...

US announces Israel’s acceptance into the Visa Waiver Program

Israeli citizens will be allowed visa-free entry into the...

UN General Assembly 2023: More progress urgently needed on Sustainable Development Goals

The 78th United Nations General Assembly (UNGA) kicked off...

Europe’s lawmakers see opportunity for regime change a year after Iran’s latest uprising

On September 21, representatives of various political groups held...

US announces Israel’s acceptance into the Visa Waiver Program

Israeli citizens will be allowed visa-free entry into the United States by the end of November when Israel officially becomes the 41st member of...

Interest surges in Turkmen gas

Turkmenistan's huge gas reserves have been generating considerable interest from potential importers following Ashgabat's announcement in late July that it is open to the development...

European aviation industry embraces new jet fuel regulation

The European Parliament on September 13 approved a new law to increase the uptake of sustainable fuels, such as advanced biofuels or hydrogen, in...

Nairobi Declaration calls for global tax on fossil fuel trade, maritime transport, aviation

As the curtains came down at the Africa Climate Summit (ACS23), heads of state and government adopted the Nairobi Declaration, calling on world leaders...

Mongolia to expand its economic and trade partnerships

Mongolia, the landlocked mineral-rich country bordered by Russia and China - the world's two preeminent authoritarian-run nations, is looking to expand its economic, trade,...

Turkmenistan signals major change in energy-export stance

A big shift is brewing for Caspian Basin energy exports. In a diplomatic about-face, Turkmenistan has signaled its readiness to develop a Trans-Caspian pipeline...

Can Central Asia escape China’s debt trap?

While Washington focuses on the war in Ukraine, Russia and China seek to expand their influence in regions where the US is not sufficiently...

Europe needs every clean energy tool it can get to deliver net-zero

Remaining steadfast in its commitment to addressing climate change, the European Union is in the midst of an unprecedented transformation to meet climate and...