In the midst of absolute energy insecurity in Europe, Cyprus is ready to make a decisive contribution to the European Union's agonizing search for alternative sources of supply. And indeed, circumstances have turned the tables, creating an important opportunity for our island. But how feasible is the transition from theory to practice in time?
According to official Eurostat data, the European market's energy dependence on Russia was 24.4% in 2020. This made it the largest supplier of energy resources to Europe, which in the same years received from the Russian market 46% of the gas it consumed. The report certainly extends to field oil (26% imports cover 37% of the EU's energy needs) and solid fossil fuels (19% imports).
Apart from being a headache, these numbers explain the EU's decision not to extend sanctions in the energy sector. In the event that the spigot was abruptly closed, then the damage would be enormous. From day one there would be severe shortages and prices would soar.
However, Brussels did not stand idly by, rushing ahead with plans that had been in the pipeline for years. To reduce dependency by 2/3 by 2022 they are discussing diversification of suppliers alongside better use of Renewable Energy Sources. At the same time they are studying the possibility of diversifying LNG (liquefied natural gas) supply sources with the aim of replacing natural gas in the medium term.
As part of this effort, Cyprus is claiming a role in the diversification of both sources and gas corridors to Europe. To achieve this, our island must act immediately, in cooperation with the companies operating in our EEZ blocks and our regional partners. Always with the support of the European Union.
This action must be twofold, since on the one hand Nicosia must close pending issues (e.g. Aphrodite - Issei) to be able to push for a revision of timetables by speeding up the extraction and exploitation processes. Our country must make up for the lost ground left behind by the long delays of recent years and move immediately into the development process. Something that, at least for Aphrodite, should have been done years ago, considering that the commercial exploitation of deposits such as Zor (Egypt) and Leviathan (Israel) took only 2-3 years. But also to look for solutions for the next stage, namely the channelling of Cypriot gas to the European market by sea.
In this effort the government should consider the possibility of using the LNG terminal that is being implemented in Vasilikos for the purpose of using natural gas for electricity generation. For example, the "ETYFA Prometheus" floating unit will be included in the Cyprus toolbox through the project. It will be the recipient of LNG from suppliers and apart from storage it will be able to process LNG through the regasification plant.
"speed" is also the key word for the discussion that has to do with the transportation of natural gas from the Levantine Basin to Europe through the East Med pipeline. The project has been promoted since 2013 and it would not be an exaggeration to say that it has gone through forty waves. However at the moment, and with energy prices allowing, it is again considered an economically viable project. A project that will create a stable energy supply corridor for European countries, which will benefit both the "transmitter" and the "receiver".
Finally, the promotion of electricity to Europe from Egypt and Israel via submarine cables remains on the table at European level. The electrical interconnection project has been embraced by Cyprus from the beginning, as it will essentially remove our country's energy isolation. But under the circumstances the EuroAsia and EuroAfrica Interconnector are of pan-European interest.
To sum up, the opportunity created by the effort to decouple Europe from Russian energy resources seems very big for Cyprus. In order not to lose momentum, good reflexes are required, which, as it turned out, has not been our forte in recent years. We need speed in making and implementing decisions, as well as substantial cooperation with our neighbours on the basis of the regional strategic alliances built over the last decade.
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