JERUSALEM, Nov 19 (Reuters) - Energean Oil & Gas
said on Tuesday its Energean International unit submitted an
application to import and supply natural gas to Cyprus starting
in 2021.
In its application to Cypriot authorities, it said it sought
to supply gas through a pipeline from the Karish block offshore
Israel to Vassiliko, Cyprus.
The pipeline would be 215 km (135 miles) long and transport
natural gas from the Karish North field, which contains 25
billion cubic metres of discovered recoverable resources.
Total investment, Energean said, will be about $350 million
and will be funded by Energean. Provided there are no delays in
permitting procedures, the project will allow Cyprus to receive
competitively priced natural gas from 2021, it added.
"Execution of the proposal will bring competition to the
Cypriot natural gas market, decrease energy costs across the
economy and result in enhanced diversity and security of
supply," Energean chief executive Mathios Rigas said in a
statement.
"We expect that the Republic of Cyprus will take advantage
of the options that the market offers for the benefit of the
Cypriot economy and the consumers."
Energean, a gas producer with a focus on the Eastern
Mediterranean, is seeking to diversify its offtake footprint
beyond Israel.
Energean noted it has already signed letters of intent with
three independent power producers that have been granted a
licence to construct combined cycle power plants in Cyprus.
It said the project will further strengthen Cyprus' role in
the Eastern Mediterranean, in accordance with a trilateral
cooperation agreement between Cyprus, Israel and Greece to
transport natural gas to Europe through the East Med Pipeline
project.
Rigas told Reuters in July 2018 that the group had sent a
proposal to build a gas pipeline to Cyprus to the country.
Tuesday's announcement relates to a more detailed and formal
application to build such a pipeline and register as a gas
importer. The Cyprus Energy Ministry had no immediate comment.
(Reporting by Steven Scheer; Additional reporting by Michele
Kambas and Shadia Nasralla; Editing by Giles Elgood)