Cyprus-Forum.com

[kurupetos]

Legend says that the Greek goddess Aphrodite, a symbol of love and beauty, rose from the sea near a rock outcropping off the southern coast of the Mediterranean island nation of Cyprus.

Soon, the myth may be joined by a symbol of economic reality — offshore drilling rigs. Houston-based Noble Energy, which recently announced a major natural gas discovery off the Israeli coast, is hoping for similar success in an area about 100 miles south of Cyprus.

If gas is found, it could transform Cyprus into a major European energy hub. “This country could be on the verge of a natural gas revolution,” Terry Gerhart, Noble’s vice president for international operations, said at the Offshore Technology Conference Thursday morning. “Gas will strengthen the Cypriot economy for decades to come.”

Noble’s latest find in Israel, the Leviathan field, is believed to hold about 16 trillion cubic feet of gas, and an earlier discovery last year, the Tamar field, is estimated to hold another 8 trillion.

No gas has been found yet off Cyprus yet, but the country’s proximity to the Leviathan field raises the potential for another major find.

Noble executives plan to drill their first exploratory well as soon as the end of this year.

I went to the breakfast out of personal curiosity. I lived in Cyprus for about a year as a child, and I was intrigued by the notion of its economy being transformed by energy wealth. Currently, Cyprus’ biggest industry is tourism.

As with Israel, the key to any economic transformation will depend on how the gas is exported. Cyprus already had plans to build a liquified natural gas plant on its southern coast, originally to import much-needed energy.

If Noble finds the reserves it thinks it will, Cypriot officials would change the design to use the facility for exporting gas in liquified form to Europe, said Solon Kassinis, director of energy services for the Cypriot ministry of commerce.

The multi-billion plant represents the biggest industrial investment in Cyprus’ history.

Michael Economides — a University of Houston professor, an expert in energy geo-politics and a Cyprus native who attended the breakfast — said that for at least the next few years, more LNG will be shipped eastward to meet Japan’s energy needs now that its nuclear power plants have been shut down from the recent earthquake.

Europe’s alternative?

That loss of supply to Europe could give Cyprus the chance to become a key supplier. “These findings would be a very important alternative resource for Europe,” said Alexandra Theodoropoulou, the Greek counsel general in Houston, who also was in the audience.

Kassinis said that providing gas to Cyprus’ fellow European Union members would be a priority should the project move forward.

Still cautious

The Cypriot government has divided its southern waters into 13 blocks, and it has developed laws it hopes will be favorable to additional exploration, including productionsharing agreements tied to the market price of crude or natural gas and no taxes on production revenue.

So far, Noble is exploring only one of the blocks, and the government is hoping it can entice more energy companies to join the search in the other areas.

Cypriot officials at the meeting were cautious about overstating the possibilities.

As anyone in the energy business can tell you, you don’t count your reserves before you find them, and even then, you count them carefully.

Still, it’s difficult to ignore the potential, and the excitement in the room was palpable. Near Paphos, tourists flock to the rock that is supposed to mark Aphrodite’s birthplace, but Cypriots may soon be seeing the beauty of economic opportunity rising from the sea.

http://fuelfix.com/blog/2011/05/06/cypr ... y-goddess/

[denizaksulu]

I am no economist but with all the LPG being piped from the former USSR states, what would be the logic of Cprus produced LPG going thew other way to Japat. Russia is only a 'stones-throw' away.

I am sure somone will come up with a logical answer.

[Sotos]

I am no economist but with all the LPG being piped from the former USSR states, what would be the logic of Cprus produced LPG going thew other way to Japat. Russia is only a 'stones-throw' away.

I am sure somone will come up with a logical answer.

Because EU doesn't want to depend on Russia

[denizaksulu]

I am no economist but with all the LPG being piped from the former USSR states, what would be the logic of Cprus produced LPG going thew other way to Japat. Russia is only a 'stones-throw' away.

I am sure somone will come up with a logical answer.

Because EU doesn't want to depend on Russia

I thought money talks. It would be cheaper, No?

[CBBB]

I am no economist but with all the LPG being piped from the former USSR states, what would be the logic of Cprus produced LPG going thew other way to Japat. Russia is only a 'stones-throw' away.

I am sure somone will come up with a logical answer.

Because EU doesn't want to depend on Russia

I thought money talks. It would be cheaper, No?

It is cheaper from Russia, but they have had supply problems in the past when Russia and one of its neighbours (don't remember which one) which the pipe line goes through, had an argument about the price.

It is also better for Cyprus to sell to the Asia (China and Japan), because the price is higher, but we are Europeans (or so they tell us).

[yialousa1971]

[denizaksulu]

I am no economist but with all the LPG being piped from the former USSR states, what would be the logic of Cprus produced LPG going thew other way to Japat. Russia is only a 'stones-throw' away.

I am sure somone will come up with a logical answer.

Because EU doesn't want to depend on Russia

I thought money talks. It would be cheaper, No?

It is cheaper from Russia, but they have had supply problems in the past when Russia and one of its neighbours (don't remember which one) which the pipe line goes through, had an argument about the price.

It is also better for Cyprus to sell to the Asia (China and Japan), because the price is higher, but we are Europeans (or so they tell us).

B..Bu..But the pipelines will not go through Chechynia, Georgia,Ukraine or Byelorussia. Russia will have free access to the northern Pacific then Japan. And no I am not jealous, just angry at the idiots who are likely to miss the boat.

[Sotos]

I am no economist but with all the LPG being piped from the former USSR states, what would be the logic of Cprus produced LPG going thew other way to Japat. Russia is only a 'stones-throw' away.

I am sure somone will come up with a logical answer.

Because EU doesn't want to depend on Russia

I thought money talks. It would be cheaper, No?

You think EU wants to depend on Russia for its energy? Maybe its cheaper but it is good for EU to have alternative and secure sources of fuel!

[kurupetos]

Some European countries, like Norway and Iceland, are energy independent. Therefore it is possible.