George Papanastasiou, the current Minister of Energy, Commerce, and Industry and former CEO of VTTI Vasilico Ltd, a subsidiary of the Vitol Group, along with Mathaios Riggas, the CEO of Energean, are playing crucial roles in the ongoing energy developments in Cyprus and the wider Eastern Mediterranean region.

Drawing on their extensive experience in the energy sector and sharing a common language, they are spearheading efforts to harness Cyprus' strategic position for the transportation of natural gas from the Eastern Mediterranean, specifically from Israel to Europe and other countries, Chryso Antoniadou reports.

Another key player in this arena is the collaboration between Golar LNG and Vitol, which aim to establish the Floating Liquefied Natural Gas (FLNG) project in Cyprus.

According to information from Brief, the government is now seriously considering a proposal for the floating unit, marking a significant shift after years of deliberation. While it may not fully satisfy the island's ambitious goals in hydrocarbon exploitation, it consolidates Cyprus' transformation into a pivotal hub for natural gas transportation to Europe.

The initial proposal was presented during a trilateral meeting of Energy Ministers from Israel, Greece, and Cyprus in April 2022. Mathaios Riggas, the CEO of Energean, suggested exporting natural gas from the company's Israeli fields to Cyprus for liquefaction, utilizing a Floating LNG platform in Vasiliko, and subsequently exporting it to European and global markets.

To support this project, a floating unit called the Hilli Episeyo FLNG, owned by Golar LNG, is expected to be available by 2026. This coincides with the projected timeline for the development of Energean's natural gas fields in Israel.

As per the proposal, the floating unit will be stationed near the VTTI jetty in Vasiliko, receiving necessary support and connected to the Karish FPSO through a 200-kilometer subsea pipeline with a capacity of approximately 4 billion cubic meters per year.

Vitol, the largest independent trader of oil, natural gas, and energy globally, has expressed interest in being the recipient of Liquefied Natural Gas (LNG) for exports to Europe and other destinations.

It is worth noting that Energean and Vitol have a previous collaboration in the trading of liquid hydrocarbons from Karish. However, before their potential partnership in this project, Energean, Golar, VTTI, and Vitol must officially apply to the Cypriot government to secure licenses for operating the pipeline and the floating gas liquefaction storage facility (FLNG) within Cyprus' territorial waters. The initial phase of the project, scheduled until 2026, requires investments totaling 1.7 billion euros, which includes the construction of the 200-kilometer pipeline. The natural gas will be transported from the drilling site to Vasiliko and the Golar LNG vessel through this pipeline.

Energean aims to start exporting natural gas to meet the needs of the Cypriot market starting in 2024, coinciding with the commencement of production from the "Northern Caris," set to be installed in the first half of 2023.

Lastly, it is important to mention that VTT Vasiliko Ltd is a wholly-owned subsidiary of VTTI B.V., a multinational company headquartered in Rotterdam, Netherlands. VTTI B.V. is listed on the New York Stock Exchange and manages twelve petroleum terminals across five continents.

To successfully carry out the project, adequate funding is essential. Fortunately, the European Union has already shown a positive inclination towards supporting the REPowerEU initiative, given that the following considerations will be taken into account:

1. Establishing agreements with third-party nations to facilitate gas pipeline imports.

2. Making investments in the liquefied natural gas (LNG) market to foster a unified platform.

3. Forging strategic partnerships with Namibia, Egypt, and Kazakhstan to ensure a reliable and sustainable supply of renewable hydrogen.

4. Entering into agreements with Egypt and Israel to enable the export of natural gas to Europe.

It is worth noting that Energean presented a proposal to the Cypriot Government in 2018, offering to provide Cyprus with an annual supply of 0.5-1.0 bcm of natural gas sourced from Israeli reservoirs via an underwater pipeline. Unfortunately, the proposal was rejected, as Cyprus expressed its intention to pursue independent plans for the importation of liquefied natural gas.

The current plan involves enhancing the capacity of the FPSO Energean Power, located in Israeli waters, and establishing a pipeline network to facilitate the extraction of natural gas from the Israeli reservoirs.