Energean plc has signed a Letter of Intent with Cyfield Group, one of Cyprus' leading industrial and energy groups, for the potential supply of natural gas for Cyfield's future power generation plant in the Mari area of Larnaca.
Following the signing of the Letter of Intent, Energean made a proposal to the governments of Cyprus and Israel for the export of natural gas from Israel to Cyprus through a new pipeline, a project it says is anticipated to benefit both markets, strengthen interregional energy cooperation and contribute to the development of a competitive and interconnected natural gas market in the Eastern Mediterranean.
Under the proposal, Energean will design, construct, own and operate a new subsea pipeline that will connect the 'Energean Power' floating production and storage unit (FPSO), which operates in the Israeli sea, directly to Cyprus.
The agreement and the project are subject to the approval of the Governments of Cyprus and Israel. Once all necessary approvals are received, the project will constitute a significant step forward for regional energy integration and security of supply.
Strengthening Regional Cooperation and Energy Security
The interconnection between Israel and Cyprus:
- Will expand the sources of natural gas supply for Cyprus and strengthen its energy security.
- Will promote cleaner electricity production, replacing petroleum fuels with natural gas.
- Will support economic growth by stabilising energy costs and improving efficiency.
- Will strengthen cooperation in the region and contribute to the creation of an Eastern Mediterranean energy corridor.
The project will also bring environmental and strategic benefits to Cyprus, such as reducing CO₂ emissions and approaching the EU's decarbonisation goals, while also highlighting the potential for constructive cross-border cooperation in the energy sector between Israel and Cyprus.
Eli Cohen, Israel's Minister of Energy and Infrastructure, commented, "Israeli natural gas is a huge strategic asset for the State of Israel.
The sale of natural gas to Cyprus will strengthen Israel's international position in the region and in Europe, contribute to stability and prosperity, and generate significant revenue for the state.
"I intend to continue promoting the expansion of export markets for Israeli natural gas."
For his part, Mathios Rigas, CEO of Energean plc, stated, “Energean works consistently in favor of the functioning of a free market, healthy competition and security of supply, with the aim of delivering natural gas to Cyprus for the benefit of the economy and consumers.
Our proposal offers a practical and cost-effective solution to Cyprus' energy isolation, providing direct access to natural gas from a neighboring source - strengthening regional cooperation and supporting the transition to cleaner, sustainable energy."
Finally, George Chrysochos, Executive Director of Cyfield Group, stated, “This collaboration with Energean can transform the energy future of Cyprus.
Access to natural gas will enable cleaner and more efficient electricity production , reduce costs for consumers and help achieve national climate goals.
We look forward to working closely with the Cypriot and Israeli authorities to implement this important initiative, in accordance with all necessary approvals."
(Source: InBusinessNews)
