In Cyprus: Gas sales to Egypt doubtful as prices collapse

Cyprus’ hopes of stepping into the gap opened up by Israel’s gas problems are at risk of foundering on collapsing gas prices, The Cyprus Weekly has learned. The opportunity for sales of Cyprus gas to Egypt appeared to increase on December 23, when Israel’s Antitrust Authority ruled that the partnership in the giant Israeli Leviathan field constituted a monopoly.

Unless a solution is found, this could stop them exporting from Leviathan. The Leviathan partners had signed a letter of intent to supply the Idku plant in Egypt with 7bcm per year for 15 years. Problems with Israeli supply focused more attention on Cyprus’ talks to supply gas to BG’s Union Fenosa Liquefied Natural Gas (LNG) in Egypt from the Aphrodite field in Block 12.

However, former chairman of the Cyprus National Hydrocarbons Company Charles Ellinas says that the oil-related drop in gas prices could have a negative impact on Cyprus’ efforts.
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