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 Oil and Gas 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.
Energean is now planning to deliver gas to the Israeli market from the Karish-Tanin Development in 2021
The company has signed gas supply agreements in Israel for about 4.2 billion cubic meters of gas a year.
The Israeli Supreme Court recently dismissed a petition by environmental groups that were trying to stop Energean from developing the Karish-Tanin fields in the Eastern Mediterranean.
With no other outstanding court battles, Energean is now planning to deliver gas to the Israeli market from the Karish-Tanin Development in 2021.
The company says on its website that it is on track to meet the deadline.
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 Giorgos Lakkotrypis was not immediately available for comment.
Energean will also bid for further supply contracts in Israel, which is privatising a gas-run power plant in Alon Tavor, and additional contracts once the country switches from coal to gas plants by 2022, Rigas said.
Gaza Marine as soon as Israelis and Palestinians give the nod
The chief executive also said the company is ready to buy and operate a 45 percent stake in the offshore gas field Gaza Marine as soon as both the Israeli and Palestinian authorities give their green light.
The field has long been seen as an opportunity for the cash-strapped Palestinian Authority to join the eastern Mediterranean gas bonanza, providing a major source of income to reduce its reliance on foreign aid and Israeli energy.
But Palestinian political disputes and conflict with Israel, as well as economic factors, have delayed plans to develop the field.
Rigas told Reuters late on Thursday that the company was ready to buy the gas field stake “if that is something the host governments approve”. “We have proven we can get gas flowing quickly,” he said.