AUTHORITIES here must get their act together if drilling for natural gas is to begin by month’s end, the energy boss said yesterday.
Energy Services Director Solon Kassinis told the House Commerce Committee: “Everything is going according to plan without any delays so we’re hoping to start drilling before the end of the month.”
According to Kassinis, Texas-based Noble Energy, which has a concession for offshore drilling, has assured authorities here they can build a pipeline from “Block 12” directly to the Vassilikos power plant by mid-2014.
Kassinis, however, cited the lack of political decision as one of the main problems.
He said he has outlined three scenarios for making use of natural gas.
The first scenario involves the transport of natural gas only from Block 12, the second from Israeli fields only, and the third jointly with Israel.
Under the pipeline option, natural gas would be available by 2014 or 2015, whereas with an FSRU (Floating Storage and Re-gasification Unit) this could be accomplished earlier, by 2013.
That was why, he stressed, there must be a strategy on a political level.
“Even the Americans (Noble Energy) want to bring us natural gas by 2014 and are asking for cooperation on the pipeline,” said Kassinis reiterating the urgency of starting as soon as possible.
Costas Ioannou, chairman of the Natural Gas Public Company (DEFA), echoed the sentiment. He said that every day wasted in not taking a political decision was making things difficult.
“The sooner a decision is made the better,” he added.
“With the current economic situation the only thing that will save us is natural gas,” said Ioannou.
According to Ioannou, authorities here have secured €10 million worth of funding from the EU for linking the grid to the three power stations, while inland the additions to the grid would cost €50 to €60 million.
Kassinis said that he has already prepared a memo describing the necessary amendments to the law. As it stands, the existing law addresses only the liquefied form of the fuel and has to be changed to include the gaseous form.
“Otherwise, when we start drilling at the end of the month, we won’t be able to use the gas in its naturally-occurring form,” he noted.
Ioannou also made a point of clarifying that DEFA cannot handle the liquefaction of natural gas under current legislation.
And Antonis Patsalis, head of production at the Electricity Authority of Cyprus, informed MPs that the EAC would be meeting with Noble Energy on Monday.
