CYPRUS could have one of the major natural gas liquefaction terminals in the world, the biggest investment in the history of the Republic, Commerce Minister Neoclis Sylikiotis said yesterday.
“Our decision to carry out this project is irreversible because the political and economic benefits would be unmatched,” the minister said.
Construction of the plant at Vassilikos is expected to begin late in 2014 or early 2015, the minister said. The aim is to have it ready by 2019.
“Our objective is for the gas liquefaction terminal to process our own gas, which we will transfer to international markets, as well as the natural gas of Israel, Lebanon, and other countries in the region”.
As regards oil, he said the government is going ahead with the construction of a state oil terminal and is engaged in negotiations with a Dutch company.
A private terminal is also under construction.
"These two will turn Cyprus into a major trade hub for oil”, he said.
Cyprus has identified vast reserves of natural gas off its coastline, with estimates of up to 60 trillion cubic feet, with just one block in the Mediterranean basin between Cyprus and Israel estimated to contain gas worth $80 billion.
The gas fields are only likely to come on line in 2018 for domestic consumption and 2019-2020 for export.
The government has recently signed contracts with the consortium EMI/Kogas for blocks 2, 3 and 9 in its EEZ, receiving €150 million, while in the coming days it is expected that contracts will be signed with TOTAL for blocks 10 and 11.
"The big benefits for our country are yet to come," Sylikiotis said, adding that the profit for the state from the exploitation of its hydrocarbon reserves would exceed 70 per cent, which would be “among the highest in the world”.
Referring to renewable energy sources, Sylikiotis said their contribution in energy consumption reached 8.6 per cent in 2012, exceeding the national target of 4.92 per cent.
And the ministry this week announced it had selected the firms that will construct 23 photovoltaic parks that will produce 80GWh at a lower cost.
The current average cost of production of electric power with conventional fuel is 15.40 cents per KWh while the average price secured through the bidding process was 8.66 cents per KWh, Sylikiotis said.
The process attracted 121 applicants who submitted 2,150 bids.
Of the 23 projects, 15 will produce up to 1.5 MW, five will have an output of up to 3.0 MW, two, up to 5 MW, and one will have a capacity of up to 10 MW.