Cyprus' Minister of Energy, George Papanastasiou, announced plans to visit Israel for a meeting with his Israeli counterpart, Israel Katz, and sign an agreement regarding the construction of a new pipeline. The pipeline aims to transfer natural gas from Israeli fields to Cyprus for liquefaction and then export it to Europe. Responding to a journalist’s question, the Minister confirmed that the government has already submitted the pipeline proposal to Israel. 

Additionally, the two Energy Ministers will have the chance to discuss the ongoing issue between the Aphrodite gas field and the neighboring Yishai that operates in the Israeli EEZ. It appears that Cyprus has already submitted a relevant proposal to Israel and as far as Brief is aware, the proposal includes a compensation payment from the Republic of Cyprus.

Mr. Papanastasiou's statement comes after the Israeli Prime Minister, Benjamin Netanyahu, and Cyprus’ President, Nikos Christodoulides’ fruitful meeting, which was held five days ago in Jerusalem. The discussed project concerned the supply of Israeli gas to Europe through a new pipeline and the construction of a liquefaction facility in Cyprus. 

Moreover, the Cypriot Minister explained that the first step is to sign an agreement in order to facilitate the pipeline’s construction between the two states’ exclusive economic zones. The project, as stated above, involves transporting and liquefying Israeli natural gas in Cyprus before exporting it to Europe via ships. The Minister also emphasized Europe’s high demand for LNG, noting that even potential markets in Asia might turn to liquefied natural gas, soon.

In regard to the timeline, Mr. Papanastasiou specified that the construction of the liquefaction station would take approximately two and a half years, following the official government’s decision and given that the private companies show their interest. Meanwhile, the pipeline's construction could be completed within 18 months. As the Minister stated in Brief, the implementation of the project is expected to cost approximately €1.5 billion, a sum that will be paid by the companies. In addition, he reminded that the liquefaction station will be constructed in Vasiliko, where there is suitable space for this scale of infrastructure.

Furthermore, the government's plan to import natural gas for electricity generation, aims to lower electricity bills, while excess quantities can be liquefied and exported to the EU. Companies involved in natural gas’ production and supply will participate in a thematic workshop, which will be held on May 29.

The Minister of Energy acknowledged that transferring natural gas from Cyprus to Egypt for liquefaction remains an alternative option for companies operating in the Cypriot EEZ; and highlighted that Cyprus aims to constantly explore multiple alternatives.

Referring to the East Med project, Mr. Papanastasiou labeled it as a "virtual corridor, connecting Cyprus to the rest of Europe”, confirming that the government has abandoned the idea of it, which was deemed highly unsustainable. 

In parallel with the above, the Government Spokesperson, Κonstantinos Letymbiotis, stated that Cyprus’ energy policy is a top priority for the government. Regarding the meeting between the President of the Republic, Nikos Christodoulides, and AKEL’s Secretary General, Stefanos Stefanou, which focused on energy matters, Mr. Letymbiotis said that the meeting’s atmosphere was constructive and added that there was a common understanding regarding the goals, timelines, and priorities set by the government."

Finally, the Spokesperson highlighted the recent statements made by the Prime Minister of Israel, Benjamin Netanyahu, regarding how the utilization of the two countries’ natural resources can become a reality. He concluded that the arrival of natural gas can relieve Cypriot households, which "have been experiencing high energy costs for quite a long time”.