Energy Minister: It will take time before Pegasus' natural gas reaches market

It will take time until the natural gas discovered at the Pegasus gas field can be exploited, said Energy Minister George Papanastasiou, clarifying that several stages of technical and commercial evaluation were required before the gas reaches the market.

Speaking to journalists on the sidelines of an event in Nicosia, the Minister explained that the discovery in the “Pegasus” well, in Cyprus’ offshore block 10, concerns a gas-bearing reservoir of around 350 metres, “which allows for optimism that this is something that is within the scope of a small to medium size deposit”, but that this would be revealed through the evaluation carried out by the company.

Papanastasiou also highlighted the importance of the technological equipment used, saying that during his visit earlier this week to the drillship he noted the quality and level of technology, which he said, made this drilling possible.

Asked if “Pegasus” was an extension of the “Glaucus” well, Papanastasiou said he did not believe this was the case, since “Glaucus” is some distance apart.

In relation to commercial exploitation, he stressed that even if significant quantities are confirmed, it will take years until exploitation.

“Processing is needed, infrastructure is needed, agreements are needed,” he said, also pointing out the difficulties when collaborations with other countries are required.

“We have managed to sign some agreements, which also provide the direction also for the next deposits,” he said.

He also referred to the possibility of synergies with neighbouring deposits, pointing out that the existence of deposits in Block 10, and in a very close distance in Block 6, creates prospects for connection, even if they are medium-sized deposits. At the same time, he stressed that the final technical solution will be determined by the energy companies that have the necessary know-how.

Regarding Block 6, he noted that ENI and Total were in consultation following the agreement with Egypt to connect Cyprus’ “Kronos” gas field with Egypt’s “Zohr” and channelling the natural gas to the Damietta infrastructure for export.

Asked about any new drillings, Papanastasiou said that the confirmatory drilling of the “Pegasus” well was pending, but that a timeframe has not been set yet. At the same time, he said, that there is interest in new offshore blocks and that the proposals are being evaluated before deciding whether to grant exploitation licenses to interested companies.

(Source: CNA)