July 5, 2018 / 3:24 PM / 12 days ago

Energean asks Cyprus for approval to import Israeli gas via new pipeline

LONDON (Reuters) - 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 blocs 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 km (124 miles) pipeline from the FPSO to Cyprus. Cyprus’ Energy Minister was not immediately available for comment.

Energean will also bid for further supply contracts in Israel, which is privatizing a gas-run power plant in Alon Tavor, and additional contracts once the country switches from coal to gas plants by 2022, Rigas said.

Reporting by Shadia Nasralla; Editing by Mark Potter

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