Cyprus seeks to import Israeli gas by 2015

Cypriot Commerce Minister Neoklis Sylikiotis: Israel is positive in supplying Cyprus a small quantity of natural gas for electricity production.

4 September 12 15:13, Globes' correspondent

The Cypriot media report that the country could receive natural gas from Israel in early 2015, at reduced prices, if discussions on the supply of small quantities are completed by the end of the year, says Minister of Commerce, Industry and Tourism Neoklis Sylikiotis in a press conference about a visit to Israel by a high ranking Cypriot delegation. The Cypriot government is seeking an interim energy solution until its own natural gas reserves can be developed.

Sylikiotis said that Israel is positive in supplying Cyprus a small quantity of natural gas, 0.5-0.7 billion cubic meters, for electricity production. He added that Cyprus would import Israeli gas in the form of liquefied natural gas (LNG) through contracts between Electricity Authority of Cyprus and Israel Electric Corporation (IEC) (TASE: ELEC.B22).

Cyprus Cypriot Energy Service director Solon Kassinis said, "Indeed Israel is willing to co-operate very harmoniously for the common good of the two countries and they are definitely willing to give us natural gas." He added, "We will also check all the parameters surrounding compressed natural gas. On September 16, we will submit in writing the infrastructural and other needs we have, and at the same time, our team will co-operate with their team to see what happens in the case of compressed natural gas."

The "Cyprus Mail" says that if a deal with Israel is reached, Cyprus would import natural gas by ships. The country needs only enough gas to power its 450-megawatt Vassilikos power plant

The paper added that Noble Energy Inc. (NYSE: NBL) and Delek Group Ltd. (TASE: DLEKG) have been promoting a venture to set up a gas liquefaction plant in Cyprus for exporting the gas from Israel’s Leviathan prospect and from Cyprus's Block 12 nearby.

Published by Globes [online], Israel business news - www.globes-online.com - on September 4, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012