Government dismisses reports on EastMed pipeline as baseless

The Government has dismissed reports that question the viability of the EastMed pipeline. The proposed EastMed pipeline will transfer natural gas from the Eastern Mediterranean to Europe. Commentators have argued that the project is not economically viable, given the distances and depth involved, pointing out that the final price of the Cypriot natural gas would not be competitive.

Government Spokesman Prodromos Prodromou said on Monday that the reports were baseless, adding that when the necessary consultations will be concluded there will be an agreement among the participating states on the pipeline.
 
“Results will be announced officially once they have been reached,” he told the press.  
 
Asked about ExxonMobil’s exploratory drill in block 10 of Cyprus Exclusive Economic Zone and the US’ reported intention to build a gas terminal in Cyprus, the Government Spokesman said that “the works proceed normally as the Ministers of Foreign Affairs and Energy have established on - site”.
 
He said that the Government will not decide a priori or preclude any possibility with regard to the commercial exploitation of the gas fields and that the best decisions will be made depending on the technical and economic data.
 
“This is proved by the fact that the Republic of Cyprus has reached an agreement on a pipeline with Egypt, at the same time it participates in a study on EastMed with EU funds, while any other possibility that could be justified by the technical and economic data remains open” Prodromou noted.
 
The Stena Icemax drillship is carrying out an exploratory drilling at the “Delfini” target in block 10 of Cyprus Exclusive Economic Zone on behalf of the ExxonMobil and Qatar Petroleum consortium.
 
The exploratory deep-water drilling began on November 16 and is expected to be concluded by the end of the year.