Cyprus Energy Ministry expects during the next days a response from the ENI-KOGAS consortium regarding the launch of negotiations for exclusive economic zone blocks 5 and 6, following a letter sent by the Ministry Thursday. The Ministry’s deadline ends on December 2.
Energy, Commerce, Industry and Tourism Minister Giorgos Lakkotrypis confirmed this today, during a press conference in Nicosia, where he evaluated the work produced by his Ministry in the first eight months of President Anastasiades’ administration.
Cyprus is currently developing natural resources discovered within the Republic’s Exclusive Economic Zone, while several international companies are involved in hydrocarbon exploration and exploitation activities. The government has so far signed several contracts with the ENI/KOGAS consortium for hydrocarbons exploration in blocks 2, 3 and 9 and with French TOTAL for blocks 10 and 11. Earlier, in 2008, Cyprus signed its first hydrocarbon exploration contract with US Noble Energy for offshore block 12.
Asked about the tasks of the recently established Hydrocarbons Service at the Ministry, Lakkotrypis said the aim was to focus on local reserves as well as on activities in Cyprus’ EEZ. He said, moreover, the new Service would focus on the internal energy and electricity market.
He also noted the role of the Cyprus Hydrocarbons Company, comprising the state’s commercial branch.
On the liberalization of the electricity market, the Minister said that Cyprus Energy Regulatory Authority has licensed two independent organisations for electricity production. Both are expecting the arrival of natural gas to start production, Lakkotrypis noted.
He added that the market has partially opened to competition while household consumers will be able to choose their provider from January 2014 onwards.
The Minister said that one option to reduce electricity costs is through the so called “interim solution”, referring to the arrival of natural gas to Cyprus for energy production from third sources, prior to the utilization of the country’s local reserves.
The Ministry is currently in the last stages of this scheme, with Lakkotrypis saying he expects final decisions to be taken until the first week of December.
On photovoltaic systems, the Minster said that liquidity shortages affect his Ministry’s goals for developing Renewable Energy Sources.
On another note, Lakkortypis said the Ministry was considering the operation of a temporary casino, until the construction of a bigger casino resort. The aim was to license the casino within 12-14 months from the day consultants are hired, he added.
Taking stock of his Ministry’s work, Lakkotrypis said that in the past eight months a lot has been achieved, but there is still more to be done.
“With the pace we are developing I am very optimistic that we can do the right moves and take the right measures to speed up the economy’s recovery” he said.
He further referred to activities in the EEZ, with the licensing of blocks 2, 3, 9, 10, 11 and 12 to the companies ENI-KOGAS, Total and Noble, as well as the signing of a Memorandum of Understanding with Noble, Delek and Avner concerning the construction of an LNG plant, in the Vassiliko area, in the southeastern coast of Cyprus.
Another milestone was the European Commission’s approval of three energy projects relating to Cyprus and the inclusion of “East Med Corridor” as an alternative energy source feed for the EU.
The Minister also spoke about the reduction in the cost of electricity and efforts to protect vulnerable consumer groups, as well as the promotion of photovoltaic systems for commercial users and households.
He said finally that revenues from tourism marked an increase of 8% since the beginning of the year, while the goal for tourist arrivals next years is to rise by 10%. Lakkotrypis concluded by saying that exports increased by 9.5% between January and August 2013.
Energy, Commerce, Industry and Tourism Minister Giorgos Lakkotrypis confirmed this today, during a press conference in Nicosia, where he evaluated the work produced by his Ministry in the first eight months of President Anastasiades’ administration.
Cyprus is currently developing natural resources discovered within the Republic’s Exclusive Economic Zone, while several international companies are involved in hydrocarbon exploration and exploitation activities. The government has so far signed several contracts with the ENI/KOGAS consortium for hydrocarbons exploration in blocks 2, 3 and 9 and with French TOTAL for blocks 10 and 11. Earlier, in 2008, Cyprus signed its first hydrocarbon exploration contract with US Noble Energy for offshore block 12.
Asked about the tasks of the recently established Hydrocarbons Service at the Ministry, Lakkotrypis said the aim was to focus on local reserves as well as on activities in Cyprus’ EEZ. He said, moreover, the new Service would focus on the internal energy and electricity market.
He also noted the role of the Cyprus Hydrocarbons Company, comprising the state’s commercial branch.
On the liberalization of the electricity market, the Minister said that Cyprus Energy Regulatory Authority has licensed two independent organisations for electricity production. Both are expecting the arrival of natural gas to start production, Lakkotrypis noted.
He added that the market has partially opened to competition while household consumers will be able to choose their provider from January 2014 onwards.
The Minister said that one option to reduce electricity costs is through the so called “interim solution”, referring to the arrival of natural gas to Cyprus for energy production from third sources, prior to the utilization of the country’s local reserves.
The Ministry is currently in the last stages of this scheme, with Lakkotrypis saying he expects final decisions to be taken until the first week of December.
On photovoltaic systems, the Minster said that liquidity shortages affect his Ministry’s goals for developing Renewable Energy Sources.
On another note, Lakkortypis said the Ministry was considering the operation of a temporary casino, until the construction of a bigger casino resort. The aim was to license the casino within 12-14 months from the day consultants are hired, he added.
Taking stock of his Ministry’s work, Lakkotrypis said that in the past eight months a lot has been achieved, but there is still more to be done.
“With the pace we are developing I am very optimistic that we can do the right moves and take the right measures to speed up the economy’s recovery” he said.
He further referred to activities in the EEZ, with the licensing of blocks 2, 3, 9, 10, 11 and 12 to the companies ENI-KOGAS, Total and Noble, as well as the signing of a Memorandum of Understanding with Noble, Delek and Avner concerning the construction of an LNG plant, in the Vassiliko area, in the southeastern coast of Cyprus.
Another milestone was the European Commission’s approval of three energy projects relating to Cyprus and the inclusion of “East Med Corridor” as an alternative energy source feed for the EU.
The Minister also spoke about the reduction in the cost of electricity and efforts to protect vulnerable consumer groups, as well as the promotion of photovoltaic systems for commercial users and households.
He said finally that revenues from tourism marked an increase of 8% since the beginning of the year, while the goal for tourist arrivals next years is to rise by 10%. Lakkotrypis concluded by saying that exports increased by 9.5% between January and August 2013.
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