Cyprus plans to initiate talks with companies with a concession in the Israeli gas field of Tamar, but also with the Israeli government, for bringing natural gas to the island perhaps as early as next year, Commerce Minister Neoclis Sylikiotis said. He made the comments on the sidelines of the Cypriot-Greek Oil and Gas 2012 Summit held in Larnaca.
During a meeting with his Israeli counterpart in Tel Aviv this week, Sylikiotis proposed that Israel should consider the idea of Cyprus buying Israeli gas as part of the upgrading of cooperation between the two countries. An initiative for laying a power supply cable between Israel and Cyprus is already undergoing advanced feasibility studies by Israel Electric Corporation.
The Tamar field is expected to come online in 2013, when the laying of pipelines running from the well to a platform offshore of Ashdod will be completed. But complications regarding gas supply contracts have meanwhile arisen in Israel between regulatory authorities, the government and the Tamar partners.
Houston-based Noble Energy and Israel’s Delek Group are partners in the Tamar field. The same companies have a stake in Cyprus’ Block 12 prospect.
Sylikiotis’ has referred to his proposal as an “interim solution” – importing gas from a neighbouring nation until such time as Cyprus can tap its own reserves. That’s not expected to happen before 2018, and meanwhile the island continues to pay for costly and polluting heavy fuel oil for its electricity needs.
