Eni’s chief executive says that a plan to move a gas pipeline to Cyprus is part of our discussion

NICOSIA, Cyprus — The chief executive of energy company Eni said on Tuesday that Cyprus-Israel plans for a pipeline to transfer offshore natural gas from the two countries to Cyprus are “part of our discussion” with the Cypriot government. The gas would be processed for electricity generation and possibly export.

Eni CEO Claudio Descalzi said after talks with Cypriot President Nikos Christodoulides that any plan to develop gas deposits found off the southern coast of Cyprus must have economic value.

Descalzi said the talks focused mainly on Eni’s plans to drill an additional well before the end of the year in Block 6 – one of seven fields within the exclusive economic zone of Cyprus where the Italian company is partnered. the partner Total of France holds licenses for hydrocarbon exploration.

“We always support the government because they asked us, we work with them and clearly everything has to have an economic value, but clearly we work together. So it’s part of our discussion,” Descalzi said in response to an Associated Press question.

The Minister of Energy of Cyprus, George Papanastasiou, said that discussions were also underway about how quickly the gas deposits found can be developed as part of a bilateral Cypriot-Israeli plan.

Eni sees the pipeline project in conjunction with a processing plant to liquefy natural gas for export by ship “favorably,” Papanastasiou said, on the condition that more investments are found to build the infrastructure make that economically feasible.

Cyprus’ energy minister said the plan is in two stages. The first envisages a pipeline to bring Israeli and Cypriot gas to the island nation for electricity generation to be consumed at home with excess supply brought back to Israel via an undersea electricity cable.

The second phase envisages the construction of plants to liquefy natural gas for export to Europe and elsewhere at a time when the continent is struggling to meet its supply proliferation due to Russia’s invasion of Ukraine.

Papanastasiou said that Cypriot authorities will meet again with Eni officials soon to speed up a deeper discussion on development plans.

Two major international oil and gas companies have already expressed interest in Israel-Cipach plans, Papanastasiou had told the AP last month.

The project’s main drawcard for energy companies is its low cost compared to other export methods, such as an idea for a 6 billion-euro ($6.5 billion), 1,900-kilometer (1,180-mile) pipeline connecting Eastern Mediterranean gas deposits directly to Europe. .

That relatively low cost would mean that companies would recoup their initial investment and turn a profit much faster.

The approximately 320-kilometer (200-mile) pipeline is estimated at 450 million euros ($489 million) and the liquefaction plant at 1 billion euros ($1.1 billion).