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Cyprus awards first production licence
PROJECTS & COMPANIES
CYPRUS has granted its first oil and gas produc- tion licence to a Royal Dutch Shell-led interna- tional consortium, as it aspires to establish itself as one of the Mediterranean’s key gas exporters.
A 25-year licence for the Aphrodite field, Cyprus’ largest offshore discovery with an esti- mated 4.1tn cubic feet (116bn cubic metres) of gas, was awarded to Shell, Texas-based Noble Energy and Israel’s Delek Group, the govern- ment said in a statement.
Development plans call for the construction of a subsea pipeline that will carry the field’s gas to Shell’s 7.2 bcm per year LNG terminal in Idku, Egypt, with Cypriot Energy Minister Yiorgos Lakkotrypis predicting production to start in 2025.
“Cyprus will thus become a producer and alternative source of EU gas supplies, while at the same time making yet another decisive step towards realising the common vision of the countries of our region for the creation of the Eastern Mediterranean Gas Corridor to Europe,” Lakkotrypis said.
Cypriot authorities expect the project to generate €9.3bn ($10.3bn) in earnings over an 18-year period.
Aphrodite was discovered in 2011, leading to a flurry of exploration activity in Cyprus’
exclusive economic zone (EEZ). These efforts have yielded results, with Italy’s Eni and France’s Total discovering the Calypso discovery last year, estimated to hold up to 227 bcm of gas. This was followed by the similarly sized Glaucus-1 find by ExxonMobil and Qatar Petroleum in February.
But development has been stymied by a mar- itime dispute between Cyprus and Turkey, with the government in Ankara conducting its own exploration in what are internationally recog- nised as Cypriot waters.
Cyprus has recently hired a Chinese-led con- sortium to supply a floating storage and regasifi- cation unit (FSRU) to import LNG itself, as part of plans to cut back on the use of heavy fuel oil and diesel supplies for its energy. There is also a plan afoot to build a 10 bcm per year pipeline that would supply Cyprus, Greece, Italy and other European markets with gas from offshore Israeli fields.
Israel Natural Gas Lines reported this month signing a memorandum with IGI Poseidon to study the EastMed pipeline project, as it is known. The pipeline could in the future pump Cypriot gas to Europe as well, depending on whether the developers of the country’s other gas finds decide to export gas in the form of LNG instead.
Finland’s Gasum builds up LNG footprint
INVESTMENT
FINLAND’S Gasum has taken a further step in growing its international LNG business, agree- ing to acquire the LNG and marine bunkering business of Germany’s Linde in Norway and Sweden.
The assets Gasum is buying include an LNG liquefaction plant, two LNG terminals, two LNG bunkering vessels and 48 gas filling stations, which it said would generate €100mn ($110mn) in annual revenues.
Gasum said the purchase would help it build up its operations in the Nordic gas mar- ket, expanding its product range for industrial, maritime and road transport customers that are seeking to use LNG as a cleaner alternative to heavier carbon fuels.
“The acquisition of AGA’s clean energy and Nauticor’s marine bunkering businesses is an integral part of our growth strategy,” Gasum CEO Johanna Lamminen said. “[It] enables Gasum to supply and to ensure the availability of a competitive, low-emission form of energy to meet the demands of industrial, maritime
and road transport customers in the Nordic countries.”
Gasum is set to relinquish control of Finland’s gas transmission system next year through an unbundling process mandated by the EU. It is looking to bolster its international presence to offset the loss of this business.
LNG marine bunkering is a particular focus for Gasum. The company currently operates two bunkering vessels, and over the summer, it commissioned with Finnish partners a new LNG import terminal in Tornio equipped with LNG refuelling stations – a project which it said was a response to growing demand for LNG in the Nordic region.
The use of LNG in marine bunkering is on the rise, as shipowners look to reduce their emissions because of tougher International Maritime Organisation (IMO) standards com- ing into force next year, as well as pressure from their clients. The Nordic region has the most developed LNG bunkering infrastructure in the world.
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w w w . N E W S B A S E . c o m Week 45 14•November•2019
