Energy Minister sees "some light on the horizon" regarding Vasiliko LNG terminal

From the contacts between the parties, as well as from his own personal contacts at diplomatic and political level with the Chinese Ambassador, "there is some light on the horizon" regarding the terminal at Vasiliko, the Minister of Energy, Commerce and Industry, Giorgos Papanastasiou has said.

The Minister represented the President of the Republic at the memorial service of Michael Olympios, which took place at the Church of St. Epiphanios in Lympia on 2 June.

Asked by journalists to comment on the latest developments regarding the terminal at Vasilikos, Papanastasiou said that consultations are taking place at various levels, both diplomatic and technical. He noted that this is a contract between two parties, on the part of the Republic of Cyprus the Natural Gas Infrastructure Company (ETYFA) and on the part of the contractor the CMC consortium, led by the Chinese company CPP.

"We, as the Republic of Cyprus, are trying to facilitate exactly this dialogue which is taking place at a technical level between the two companies" the Minister said, while noting that the direction is towards implementing the Vasilikos terminal "because the Republic of Cyprus needs it."

The reason why the Vasilikos terminal is so important, he continued, is because it is the first way of importing natural gas, LNG, to reduce the cost of electricity.

Asked if any timeline has been set, Papanastasiou said that "we have set an internal timeline that within June a decision should be made. Of course these timelines depend a lot on the other side as well."

Asked whether there is a positive development in this direction, Papanastasiou replied that from the latest information he has from the contacts between the parties, but also from his own personal contacts at diplomatic and political level with the Chinese Ambassador, "there is some light on the horizon."

Responding to a question about Turkey's announcements that it is sending a drilling platform again and whether this development affects the Republic of Cyprus' plans, the Minister replied that "it does not affect them at all", adding that "we know what Turkey aims at" in the region.

He noted that in the eastern Mediterranean, there is international law, there are regulations and within international law and regulations, the Republic of Cyprus operates and proceeds with its drilling programme.

Turkey, he continued, can carry out parallel drilling within its own Exclusive Economic Zone (EEZ), within its own continental shelf. "You understand that we as the Republic of Cyprus are not bothered by any position of our neighbour Turkey," he added.

When asked if there is anything to be announced in relation to the consultations on the Aphrodite natural gas deposit, the Minister of Energy said that the Aphrodite consortium, led by Chevron, communicated an overall direction they are taking. "We believe it is in the right direction and we have asked the consortium to give us a concrete, time-bound path that will result in the development of the field."

He added that the Aphrodite natural gas deposit is the most mature in Cyprus' EEZ and is an important deposit as it is located at a geostrategic point in the wider eastern Mediterranean region. He added that this deposit must be exploited, saying that "we trust this consortium that within the timeframe given - that is, six more months from the day they received the letter - they will bring us something very concrete so that the exploitation of the deposit can proceed."

(Source: CNA)