Cyprus: Energy potential, export options & revenue management – Middle East Strategic Perspectives

Map of Cyprus with EU flag

Map of Cyprus with EU flag (Photo credit: Wikipedia)

European flag outside the Commission

European flag outside the Commission (Photo credit: Wikipedia)

This is an excellent article and a strongly recommended read. Check it out!

via Cyprus: Energy potential, export options & revenue management – Middle East Strategic Perspectives.

This is my third blog on energy in a couple of days. Here are the links to the first and second blog:

Is energy security a job for Nato? | Nick Butler.

Opinion: European Commission’s (EC) strategy paper on energy security

As I reflected on the article on Cyprus Energy Potential, my mind went back to the EC’s strategy paper on energy security. What alarmed me was that the EC’s strategy paper had none of the data mentioned in the first article. The EU’s paper ignored alternative sources of gas. I was further shocked that the EU strategy paper on energy security ignored Cyprus – I kid you not!

Reading the Cyprus Energy potential article, it looks like Cyprus would favor the higher prices in the Far Eastern market, rather than Europe where gas prices are depressed. Surely, it’s in the interests of the European Community to influence Cyprus, perhaps with investment funds or other attractive concessions?

Returning to the EU’s strategy paper, I reproduced below their appendix with regard to gas projects. As I was reflecting on the list, I picked up a lovely insight into the workings of the EU bureaucracy – See Sofia Globe’s article entitled European Commission welcomes Bulgaria’s suspension of work on South Stream.

Digging a little further, I found that the European Commission’s Director General for Energy was Domique Ristori, a French bureaucrat. Let me ask an open question:

Should I be worried that Europe’s strategic interests in energy are likely to be diluted under the leadership of European Commission Director General, Domique Ristori?



Annex 2: Status of key security of supply infrastructure projects

Natural gas projects

A || Short-term projects || (2014 – 2016) ||

# || Name project || Details || Finished by

Baltic gas market

1 || LT: LNG vessel || Vessel (not a PCI). Status: under construction || End 2014

2 || Klaipėda-Kiemėna pipeline upgrade || Capacity enhancement of the connection from Klaipėda to the LT-LV interconnector. Status: EIA and engineering design || 2017

Gas optionality in Central and South-East Europe

1 || PL: LNG terminal || Terminal in Swinoujscie and connecting pipeline (not a PCI due to maturity). Status: under construction || End 2014

2 || EL-BG interconnector || New interconnector to support diversification and deliver Shah Deniz gas in Bulgaria. Status: permitting, EIA (2 years delay) || 2016

3 || EL-BG reverse flow || Permanent reverse flow on the existing interconnector (alternative/complement to IGB). Status: pre-feasibility || 2014

4 || BG: storage upgrade || Increase storage capacity in Chiren; Status: pre-feasibility || 2017

5 || HU-HR reverse flow || Reverse flow enabling gas flows from Croatia to Hungary. Status: feasibility studies. || 2015

6 || HU-RO reverse flow || Project to enable gas flows from Romania to Hungary. Status: feasibility studies || 2016

7 || BG-RS interconnector || New interconnector supporting SoS in Bulgaria and Serbia. Status: EIA, routing, financing (issued with Srbijagas unbundling to access finance) || 2016

8 || SK–HU interconnecter || New bi-directional pipeline. Status: construction || 2015

B || Medium-term projects || (2017 – 2020) ||

# || Name project || Details || Finished by

Baltic gas market

1 || PL-LT interconnector || New bi-directional pipeline (GIPL) ending isolation of the Baltic States. Status: feasibility/FEED || 2019

2 || FI-EE interconnector || New bi-directional offshore pipeline (“Balticconnector”). Status: pre-feasibility/permitting || 2019

3 || Baltic LNG terminal || New LNG terminal with location to be decided (EE/FI). Status: pre-feasibility, permitting || 2017

4 || LV-LT interconnector || Upgrade of the existing interconnector (including compressor station). Status: pre-feasibility || 2020

Enabling gas from Spain to flow north

1 || ES-FR “Midcat” interconnector || New interconnection (including compressor) to enable bi-directional flows[29] between France and Spain. Status: feasibility study || tbd

Cluster Gas optionality in Central and South-East E urope

1 || PL-CZ interconnector || New bi-directional pipeline between Czech Republic and Poland. Status: Feasibility/FEED, permitting (CZ) || 2019

2 || PL-SK interconnector[30] || New bi-directional pipeline between Slovakia and Poland. Status: final investment decision in 2014 || 2019

3 || PL: 3 internal pipelines and compressor station || Internal reinforcements needed to link input points on the Baltic Coast to the PL-SK and PL-CZ interconnectors. Status: pre-feasibility || 2016-18

4 || TANAP (TR-EL) || Trans-Anatolian Natural Gas Pipe bringing Caspian gas to the EU via Turkey and opening the Southern Gas Corridor. Status: feasibility/final investment decision || 2019

5 || TAP (EL-AL-IT) || Intra-EU section of the Southern Gas Corridor. Direct connection to TANAP. Status: permitting || 2019

6 || IAP (AL-ME-HR) || New interconnector part of the Balkan Gas Ring and connected to TAP. Status: feasibility/FEED || 2020

7 || HR – LNG terminal || New LNG terminal in Krk supporting SoS and diversification in the Region. Status: feasibility/FEED (financing issues) || 2019

8 || BG: internal system || Rehabilitation and expansion of transport system needed for regional integration. Status: feasibility/FEED || 2017 (tbc)

9 || RO: internal system and reverse flow to UA || Integration of the Romanian transit and transmission system & reverse flow to Ukraine. Status: feasibility study (regulatory issues with reverse flow) || Tbd

10 || EL: compressor station || Compressor station at Kipi to enable TANAP and TAP connection. Status: permitting. || 2019

11 || EL: Alexandroupolis LNG terminal || New LNG terminal in Northern Greece. Status: permitting || 2016[31]

12 || EL: Aegean LNG terminal || New LNG floating terminal at Bay of Kavala. Status: feasibility/FEED, permitting || 2016[32]






One response

  1. Dominique Ristori is a lawyer and has been a career civil servant and politician since 1978 a period of 36 years.

    During that time he has never run a commercial enterprise, knows nothing about business and has never met a payroll.

    That much is obvious from publicly available data about this man’s background which also seems to indicate he knows nothing about oil and energy and even less about the geopolitics and strategic military thinking that needs to underpin any EU policy on energy.

    Dr Alf should, in answer to his own question, be very worried indeed about this man and about the fact that Europe has no coherent strategy to deal with Vladimir Putin or a future military threat to oil imports or to France’s nuclear power stations.

    The fact that Cyprus is not mentioned, that Turkey’s control of Northern Cyprus is not mentioned or considered points to the fact that the issue has not been thought about.

    Israel, which wants to join the EU has oil and gas and rumor has it that gas in large quantities lie in Gaza which at the moment is experiencing severe collateral damage.

    Europe should be building nuclear power stations and fracking just as the UK is belatedly attempting to do.

    Instead it writes documents which make no real sense because they are written by people devoid of the specialist knowledge required and utterly devoid of commonsense.

    If the plan is to put more people out of work, de-industrialize and force young Europeans to emigrate then not having a plan for energy linked to growth and jobs makes perfect sense.

    So it is a case of “By their actions you shall know them”.

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