Press Releases

It is with great pleasure that I welcome you to “The Cyprus Gateway: Natural Gas to Power and Liquefaction” high-level workshop, organised by the Ministry of Energy, Commerce and Industry and the Cyprus Hydrocarbons Company.

Today’s workshop is an initiative of my Government to refocus on Cyprus’ energy needs and competitiveness, as a matter of utmost priority.

The unprecedented energy crisis following Russia’s invasion of Ukraine, combined with the inflationary pressures on world economies, have forced the European Union to urgently look for alternative energy sources and supply routes. As a result, over the past two years we have witnessed a clear shift in global geopolitical and energy market realities, which unavoidably have also impacted Cyprus.

The new Government of the Republic of Cyprus, from its first day in office, has set the reduction of electricity cost for households and businesses as a priority, which will support the country’s competitiveness and, consequently, the viable and sustainable growth of our economy.

At the same time, we are called upon to efficiently address the issue of Cyprus’ energy isolation and dependence on imports of fuels, thus enhancing security of our energy supply.

This will be achieved with interconnections with neighbouring countries, and by promoting electricity storage systems, which are essential for fully harnessing the energy produced from renewable energy sources.

As key pillars of the updated energy strategy of the Republic of Cyprus, we have defined:

•        the strengthening of the security of energy supply,

•        neutralising the effects on Cyprus from geopolitical events that have an impact on energy cost,

•        the lifting of the country’s energy isolation,

•        the sustainable and efficient operation of a competitive electricity market and an internal natural gas market,

•        the rapid transition to a green and circular economy, based on the EU’s Green Deal and “Fit for 55” package, which aims at reducing greenhouse gas emissions by at least 55% by 2030.

In our efforts to substantially reduce the cost of power generation in Cyprus and, consequently, the price of electricity to consumers, we are proposing, through “The Cyprus Gateway” initiative, to consider an alternative to efficiently monetise the Eastern Mediterranean’s natural gas resources. By placing Cyprus first, we have come up with a technically feasible solution, which will be beneficial, in our opinion, for all parties, to bring natural gas to Cyprus for power generation and, in parallel, for liquefaction and exportation to Europe.

The focus will be on transporting, via a pipeline, natural gas originating from fields in the Eastern Mediterranean for use in conventional power generation in Cyprus. To ensure the project’s viability, an LNG facility can be developed in parallel, at the Vasilikos area, which can be floating or of modular technology on shore.

Through this facility, natural gas from the Eastern Mediterranean region can be liquefied in Cyprus and transported by LNG carriers to the European markets, thus creating an East Med corridor of gas supply to Europe. This project is of great interest to the EU.

I am confident that through synergies between energy, technology and investment organisations and the partnership of the Government of Cyprus, we will unlock mutual and equitable benefits for all of us.

We therefore urge the companies and investors active in the Eastern Mediterranean, as well as others who look favourably upon the region as a potential new source of natural gas supply for Europe, to explore these synergies and of course with our support, to take advantage of this opportunity.

This alternative approach of our energy strategy will be presented today by our experts. Please consider being part of this effort and propose ways through which you can be involved in the natural gas and electricity supply chains of the project. Our team and the Minister of Energy stand ready during the workshops and the one-to-one meetings that will follow, to make any clarifications you may need and listen to your feedback and ideas for optimising our plans.

Cyprus, we believe, is uniquely positioned to positively contribute to energy solutions that the Eastern Mediterranean can offer.

Major cross-border projects, including electricity interconnections, are being promoted in the region, some funded by the EU as a result of their significance to EU member states and Europe as a whole.

We aim to continue and intensify our efforts towards energy diplomacy, actively promoting collaboration on energy between Eastern Mediterranean countries. “The Cyprus Gateway” initiative is part of these intensified efforts, providing to interested entities an alternative for leveraging knowledge and expertise and monetising gas resources, through transportation and liquefaction of gas in Cyprus.

The Ministry of Energy of the Republic of Cyprus and the Cyprus Hydrocarbons Company are ready to engage with you and your industry peers on how we can create investible opportunities.

Today’s workshop is only the beginning of my Government’s efforts to create a robust economy for the people of the Republic of Cyprus, whilst contributing to the security of energy supply of the European Union.

In concluding, I wish to extend my deepest appreciation, yet again, to all the company representatives participating in today’s workshop, the deliberations of which I am certain will be very interesting and very productive.

(RM/EP)