Philenews outlines the minister's perspective on the energy situation in Cyprus.

Philenews explains more or less: The primary focus is on the necessity to lower the high electricity prices in Cyprus. To achieve this, the minister is considering the development of the Aphrodite gas field and the introduction of natural gas via pipelines. The ultimate goal is to make the Cypriot economy more competitive by leveraging cheaper natural gas resources from Aphrodite or even neighbouring regions like Israel. This approach is presented as a viable alternative to the current LNG import method, which is deemed expensive despite its environmental advantages. The article sets up a context for the reader, emphasizing the importance of Aphrodite's development for Cyprus's economic and energy future.

Recent discussions about Cyprus' energy landscape, as highlighted in Philenews, shed light on the nation's intention to tap into the Aphrodite gas field as a means to mitigate soaring electricity prices. However, the plan, as articulated by the country's Energy Minister, raises several questions which merit thorough scrutiny.

1. Pipeline Infrastructure Concerns: The primary question centers around the feasibility of constructing a pipeline to deliver natural gas to Cyprus. Notably, Cyprus's natural gas needs for its power production are quite minimal, not exceeding 1 billion cubic meters annually. This limited demand makes the entire infrastructure construction, including a pipeline from Aphrodite to Cyprus, economically unviable. Such conclusions stem from extensive techno-economic studies carried out by reputable international firms. The fundamental reason behind the inability to transport natural gas from the Aphrodite reservoir to Cyprus for power generation purposes, and the non-exploitation of the Aphrodite field for over a decade, is rooted in these studies. Corporate decisions are predominantly based on sheer economic criteria and data, prioritizing project sustainability over state desires. These study outcomes should be accessible and available to the Energy Ministry.

2. **Natural Gas Liquefaction and Export:** If, as the Energy Minister suggests, the constructed natural gas pipeline simultaneously supplies a natural gas liquefaction terminal in Cyprus, aiming at exporting liquefied natural gas (LNG) to other countries, another predicament arises. Where would the natural gas be sourced from to meet our power production requirements and the necessary quantities to be liquefied at the LNG terminal? Considering that the Aphrodite reservoir's approximate quantity of 4 trillion cubic feet (tcf) isn't sufficient on its own over a 20-year horizon to offset the vast infrastructure costs, it's doubtful that such a solution would be sustainable.

In conclusion, while the aspirations to harness the Aphrodite gas field's potential are commendable, the economic realities and feasibility concerns cannot be overlooked. It's crucial that the Cypriot authorities undertake a holistic and pragmatic approach, ensuring long-term sustainability and viability in their energy strategies.

To implement this solution and achieve a long-term return on the cost of all the necessary infrastructure, including the construction and operation of the natural gas liquefaction terminal in Cyprus, it is essential to secure quantities from the major deposits in Israel, such as Leviathan or Tamar, which have almost eight times the amount of Aphrodite.

However, there may be difficulties in securing the necessary quantities from Israel's deposits to meet the electricity and liquefaction needs in Cyprus, as the companies involved in Israel's pieces, besides their obligations to Israel itself to meet its own needs, also provide significant amounts of natural gas to Egypt, through pipeline infrastructure that has been built and has been operating for years.

Just recently, it was announced by the companies involved in the Leviathan deposit that they would invest in new infrastructure, so that the amount exported from Leviathan increases from 12 billion cubic meters per year to 14 billion cubic meters per year or even more, to meet the constantly increasing demands.

It is also important to seriously consider that the companies that have the right to develop the Aphrodite deposit are the same companies that are involved to some extent in the Leviathan and Tamar pieces.

Therefore, they have a holistic view and knowledge of the best way of development/exploitation in the area, including the best way Aphrodite could be developed. How are these companies expected to cooperate with us to provide us with the additional quantities from the Leviathan and Tamar deposits that Cyprus will need for electricity production and liquefaction at the new terminal to be erected in Cyprus if the negotiations for the exploitation of the Aphrodite deposit collapse?

It has been proven that only with the involvement of large corporations involved in our deposits will the reserves be exploited, without risking efforts from Turkey's illegal/aggressive actions, such as what happened in block 3, where ENI's drilling rig was obstructed and had to withdraw. If the exploitation of Aphrodite by these large companies proceeds, and they receive political support from major powers, other companies might be encouraged to exploit our other reserves.

The very good relations between Cyprus and Egypt should continue and be strengthened even more, extending and exploiting in the energy sector. However, it's important to mention that our continuous references to Israel and the decision to establish technical committees from both countries to explore energy issues, including natural gas and the electric connection between Cyprus and Israel, although praised, may give the wrong impression that a more selective and privileged relationship is being promoted with Israel, in comparison to Egypt.

Under no circumstances should misconceptions or shadows be created that could destabilize the harmonious relations between the two states. If doubts arise due to our unclear positions, this would be disastrous for Cyprus, because without Egypt, it is doubtful that Cyprus's natural gas can be exploited. Essentially, Egypt appears to be our only option for exploiting the Aphrodite deposit and perhaps our other reserves. Thus, every effort should be made to immediately eliminate any possible shadows that may have been created.

The tense and dangerous situation that has recently emerged in our area is another reason why the right and bold decisions need to be taken and to act immediately, now that there seems to be a chance to proceed with the exploitation of Aphrodite by the large companies that have the right to exploit it. Otherwise, it is doubtful whether there will be another opportunity in the future.

Given the above, another fundamental and important question arises:

Which other serious group of companies, with political support from major powers, could undertake to implement such a complex and costly project, which would include the construction of a pipeline from the Aphrodite deposit to Cyprus and the construction and operation of a natural gas liquefaction terminal in Cyprus, at a cost of several billion euros, without certainty about securing the necessary amounts of natural gas over a 20-year horizon?

Based on the above, it seems that the goal of constructing a pipeline from the Aphrodite deposit or even the deposits of Israel to Cyprus is difficult to impossible. And this will be proven in the next period.