BUSINESS

Energean asks Cyprus for pipeline approval

TAGS: Energy

Energean is seeking approval from Cyprus for the Greek oil and gas firm to build a pipeline from its Israeli offshore gas fields and import 0.5 to 1 billion cubic meters of gas a year to the island, Energean’s chief executive said on Thursday.

Energean, which listed on London’s main stock exchange this year, has committed $1.6 billion to the Karish and Tanin fields, which have potential reserves of 2.4 trillion cubic feet of natural gas and 32.8 million barrels of light oil and condensate.

It estimates the five blocks it owns around Karish and Tanin contain an additional 5 trillion cubic feet of gas. It expects an external assessment over the coming weeks.

“We submitted a proposal to sell gas from the FPSO [floating production storage and offloading facility] to Cyprus. We sent it last week,” CEO Mathios Rigas told Reuters.

The company has signed gas supply agreements in Israel for about 4.2 billion cubic meters of gas a year.

Energean is positioning itself in the Eastern Mediterranean with a newly built FPSO facility with capacity of 800 million cubic feet a day and liquids capacity of 800,000 barrels.

It wants to build a 200-kilometer pipeline from the FPSO to Cyprus.

[Reuters]

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