The course of implementation of Nicosia's energy plans has been characterised in recent years by repeated postponements and long delays. Even though the effort of our country to become a hydrocarbon producer started with the best omens, a series of exogenous factors turned the data upside down, making the project difficult.
The delays are mainly due to three factors. The pandemic of coronavirus and the crisis in energy prices brought the ups and downs in the first phase.
[C] The delays are mainly due to three factors. The pandemic of coronavirus and the crisis in energy prices brought the ups and downs in the first phase. The third factor is the environmental developments, which currently hold the lion's share of the concerns. After COP26 the planet is officially aiming for climate neutrality by 2050. This means that by the end of the current decade there should be a serious reduction in greenhouse gas emissions and a shift to renewables. On this basis, the International Energy Agency estimates that there is no need for new gas and oil discoveries, as existing ones will be sufficient and abundant until 2050.Drilling on "ice"
The pandemic and the restrictions imposed worldwide have been given as a reason for the long delay in the execution of the drilling programme in the licensed blocks of the Cyprus EEZ.
In 2020 at least three exploratory wells were to be drilled in Blocks 6, 8 and 11 by the consortium of ENI and TOTAL. To date none of these have been drilled and it is unclear exactly when they will be drilled.
In the same years the confirmation and one exploratory well was to be drilled in Block 10 by the consortium of Exxon and Qatar. Just a few weeks ago, on Christmas Eve, work began on the first one.
However, the government appears reassured that despite the postponements, the planned drilling will proceed within the next two years. It cites the commitment of the energy giants operating on the island. As an example of the mobility to come, it presents the recent licensing of Block 5 to Exxon and Qatar.
Aphrodite is still waiting
The development of the "Aphrodite" field, which was originally due to start in 2020, has also gone through forty waves. According to the initial plan, the gas would be transported to Egypt via an undersea pipeline and liquefied at the Idku Liquefaction Plant. Part of it would be sold to Egypt's domestic market and the rest would be exported to Europe and global markets. Jordan had also expressed an interest in buying it.
The rapid drop in international prices in 2016 also reversed this, leading the managing consortium to request a change in the terms of the contract in 2018. After a year of discussions, a revised Development and Production Plan was signed under which exploitation of the field would begin in 2025. Indeed, the then Minister of Energy, George Lakkotrypis, had stated that strict conditions were set to meet the schedule.
The 2025 "train" was lost as serious delays were recorded in this phase as well. The second confirmatory drilling was to take place in 2021 and according to the plan the final investment decision was to be signed in 2022 so that work on necessary infrastructure could begin in 2023. So so far, a delay of at least one year is foreseen and... we'll see.
Terminal at Vasilikos
The delay in the implementation of the Vasilikos liquefaction terminal project is also attributed to the pandemic. According to the original timetable, the project was to be commissioned next summer. The plans have changed and the terminal's engines are expected to start up in the first half of 2023.
Officials assure that work is continuing at an intensive pace. At the present stage, work is being carried out on the construction of the facilities for the transport of natural gas to the power plant of AEK. At the same time - at a shipyard in China - work is progressing on the conversion of the LNG carrier "ETYFA Prometheus" into a floating storage and regasification unit. Work is currently in the process of installing regasification and power units on board.
In a statement issued by the manufacturer China Petroleum Pipeline on Thursday, it was clarified that work on the ETYFA Prometheus continued uninterrupted throughout the holiday season.
This project, which will supply clean natural gas to the Vasilikos Power Station, has been described as a mega project with multiple benefits, marking the transition to a fuel less polluting than petroleum products, which will boost the island's efforts to meet the binding targets of the National Energy and Climate Plan.
Considering the above, this project seems to be the last chance for the Anastasiades Government to hand over the baton to the next President in 2023 and the largest energy project ever undertaken in Cyprus.
A meeting, which will deal with the arrival of the gas and the progress of the infrastructure projects, has been set by the President of the Republic for Friday, January 21.
Contents of this article including associated images are belongs Cyprus Times
Views & opinions expressed are those of the author and/or Cyprus Times
Source[/URL]Cyprus Times[/SIZE]
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