Cyprus' Minister of Energy Meets with Commissioner Oettinger During Brussels Visit
Natural Gas Europe had the pleasure to meet with the Minister of Energy of Cyprus Yiorgos Lakkotrypis in his office in Nicosia to discuss the natural gas developments in Cyprus, Cyprus' export options, its collaboration with its Eastern Mediterranean neighbours on energy matters, how the gas reserves can affect diplomacy and Cyprus' eventual contribution in strengthening Europe's energy security. This article is the first of a series of articles related to this meeting.
The minister of energy of the Republic of Cyprus Yiorgos Lakkotrypis travelled to Brussels on Monday 23 June to meet with the European Commissioner for energy Günther Oettinger. The purpose of the visit is to discuss Cyprus’ natural gas reserves and the potential contribution of Cyprus to Europe’s energy security.
In his office in Nicosia prior to departing for Brussels, Lakkotrypis told Natural Gas Europe that Cyprus is key to the EU for it can constitute an alternative source of natural gas to the EU and an alternative route. When asked if it were a realistic assumption to suggest that Cypriot gas could be part of the solution to the EU, Lakkotrypis answered affirmatively. He insisted that the Eastern Mediterranean as a whole could play an important role in diversifying Europe’s sources of energy and energy routes.
Lakkotrypis added that while it is a fair argument that the Eastern Mediterranean’s current reserves are not sufficient to satisfy Europe’s natural gas needs, tapping into the region’s reserves in the future would allow Europe’s to move closer to its energy strategy. The EU has been committed for the past decade to diversifying its sources of energy. The Ukraine crisis has reminded Europe of the pressing need to take serious action towards strengthening its energy security and loosening Russia’s grip over its market.
Natural Gas Europe asked Lakkotrypis if Cyprus will enter the export market in time to benefit from attractive gas prices before the entry of new players affects supply and pushes prices down. The minister answered that the Government of Cyprus has studied several scenarios involving LNG and pipeline options and has allocated a deadline for each possibility. ENI and Kogas will start drilling offshore Cyprus by the end of the summer. The results of their exploration activities will be key in determining the fate of the onshore LNG terminal in Vassilikos.
Lakkotrypis commented on the eventual collaboration between Israel, Cyprus and Turkey by saying that any sort of collaboration with Turkey has one prerequisite: a fair and sustainable solution to the Cyprus problem. When asked if Turkey can realise its energy hub ambition, Lakkotrypis added that Europe will most probably avoid making of Turkey another Ukraine and will seek to diversify its routes.
Karen Ayat is an analyst and Associate Partner at Natural Gas Europe focused on energy geopolitics. Email Karen on karen@minoils.com. Follow her on Twitter: @karenayat