COMMERCE Minister Antonis Paschalides confirmed yesterday that Delek Group has “expressed an interest” for a joint natural gas project with Cyprus, following persistent media reports that the Israeli company has proposed to Cyprus the creation of a liquefied natural gas (LNG) facility on the island.
“There has been an expression of interest from Delek for a type of cooperation,” Paschalides told newsmen, but hastened to add that the government has not taken a final decision with regard to its natural gas policy.
“The energy issue and the advent of natural gas should not be simplified, there are many ramifications, and I want to assure the public and all interested operators that the government, before making its final decision, shall take into account all the data, which are being assessed, including all the recent developments, proposals or reports,” he said.
The Middle East Economic Survey (MEES) reported last week that Delek has written to the Cypriot government proposing cooperation to set up a multi-purpose facility that would receive and process gas into LNG, at a site proposed by the Cypriot authorities.
The Israeli company is a partner of US energy firm Noble, which has a concession to drill for hydrocarbons in a field in Cypriot waters, close to significant Israeli finds.
Initially the government denied knowledge of such a proposal, with its spokesman Stefanos Stefanou stating that no official proposal had been made “by Israel.”
“As far as I know, no proposal – in the sense of a proposal with specifics and relevant information – exists. A sounding-out is one thing, a proposal is another,” was the spokesman’s cryptic comment yesterday.
“The government has its advisors, and will consider everything before making a decision. The rhetoric should be dialed down,” he urged.
Earlier this month, Paschalides said Royal Dutch Shell had made Cyprus the best competitive offer for a 20-year supply line of liquid natural gas, following months of consultations with a short list of potential suppliers.
Meanwhile the Electricity Authority of Cyprus is looking for a strategic investor to co-finance a land-based terminal that will process LNG, a project estimated at €800 million.
It’s not clear whether the now public admission of Delek’s interest for a joint project on the island would place the natural gas issue on a different track. At any rate, developments have been moving swiftly over the last couple of weeks.
Today, Paschalides will be meeting the leadership of the Natural Gas Public Company (DEFA), the body tasked with handling the natural gas file. And a special session of the House Commerce Committee has been called for tomorrow so that deputies can get a thorough briefing on the government’s intentions.
The board of DEFA, which held the consultations with the interested suppliers and has since reported its findings to the government, is also due to brief President Christofias.
Speaking to reporters yesterday after a session of the DEFA board, its chairman Costas Ioannou stressed that the body does not have final say on policy.
“We are waiting for the government’s opinions on the matter. We have reported our findings…and without obtaining the government’s views, the board shall not make any other decisions,” said Ioannou.
Meanwhile the Free Pancyprian Union of Electricity Authority Employees (EPOPAY) released a statement yesterday urging the government to clarify its stance:
“There is no doubt that…receiving natural gas via a pipeline, be it from our own finds or Israeli deposits or elsewhere, is a far less costly solution. We therefore call on the state to clarify its position and to explain to the public what the options are. If the outlook is positive for the near future, then we say a big ‘yes’ to a pipeline.”
