The new discoveries of natural gas in Cyprus can contribute to the energy security of the EU, said Cypriot Minister of Agriculture, Natural Resources and Environment Nicos Kouyialis, delivering the keynote address of the conference.

“Oil & Gas prospects could provide tremendous growth in the area giving a new premise to the role that the Mediterranean region can play in the global energy market and the security of the European energy market”, he pointed out.

He added that the EU today is facing challenges in its energy security due to the crisis in the Ukraine, noting that the European energy security policy aims to diversify the routes and resources and natural gas supplies.

“The Cypriot natural gas is essentially the European Union natural gas”, he noted, inviting professionals in the field to invest in the Cypriot energy sector.

Kouyialis stressed that the discovery of natural gas is part and parcel with the responsibility of environmental protection of the Mediterranean. He recalled that Cyprus relies heavily on tourism and takes measures for the protection of environment. Cyprus, Kouyialis said, “considers that regional cooperation is imperative”.

To this extent he explained that discussions are at a final stage with Israel before signing a bilateral agreement on environmental protection from oil spillages from offshore activities.

The agreement, he added, will merely be a starting point. He also stated his intention to engage in discussions with other neighbouring countries so as to proceed with bilateral or even trilateral agreements.

Next week in Athens at a Euro Mediterranean Environment Ministers meeting he said he intends to initiate discussions with Israel and other neighbouring countries with a view to formulating an environmental agreement between regional countries.

“It is our strong belief that only through regional cooperation can matters of environmental protection be sufficiently addressed,” he concluded.

On his part Daniel Stein, Senior Advisor for the Bureau of Energy Resources US Department of State, said decisions made here in the Eastern Mediterranean are directly linked to those in other parts of the world.

He expressed the point of view that no questions can be answered in isolation and assured that the US is not pulling back from the EU and the rest of the world. Energy security, market efficiency, stability and cooperation here in the Eastern Mediterranean and more broadly Europe will continue to be in America’s economic, foreign policy and national security interests, he said.

At the same time he spoke of natural gas developments in the US, noting that in recent years due to the so-called ‘shale’ revolution, which combines different technologies in a way that enhances production the US has been able to export to Europe and the rest of the world.

There are currently 7 LNG export projects licensed in the US, Stein said, adding that if all of these projects are built the US could be exporting about 95 million cubic meters of gas per year in the form of LNG.

President of Cyprus Hydrocarbons Company Toula Onoufriou spoke of the need to have a mutli-faceted strategy as regards natural gas, which will include best international practices, building and investing in other key areas in parallel to oil & gas and building strong human capital. She also referred to the need for regional and international collaboration, expressing at the same time the belief that Cyprus can become a regional energy hub.

“We believe that it’s a significant opportunity for Cyprus to reposition itself”, she noted, adding that the right policies and effective management resources can help the country to emerge from the crisis stronger.

Onoufriou further referred to the construction of an LNG plant in Cyprus, noting that it is a strategic target, that Cyprus will benefit with the creation of many jobs and that it will create the opportunity for the country to become a regional energy hub.

She also spoke of the benefits of collaboration with Israel and possibly other countries, outlining the benefits of joint operations, such as the creation of economies of scale, the reduction of costs and increase of revenue as well as the increased international confidence in the region.

Recent events in the Ukraine, she noted, emphasise the need for diversification of the EU energy market.

This, she said, is a unique opportunity for the region’s countries and Cyprus has a duty to exploit it in the best possible way.

She also said that Cyprus could also become a centre of education, training and research on energy matters.

Referring to safety and environmental protection, she spoke of an on going research project at Cyprus University of Technology, which explores developments and the implementation of the safety regime for offshore oil and gas operations in Cyprus.

Source: Famagusta Gazette