RIK Interviewer: Recent attention has largely centered on imminent energy decisions. However, before delving into the achievements and future expectations of the trilateral talks between Cyprus, Greece, and Israel, can you clarify if there were any concrete outcomes from your meeting in Singapore with the Egyptian Energy Minister? Lately, there seems to be growing speculation about a potential shift in Cyprus's energy partnerships away from Egypt. Can you address these concerns?

Minister Papanastasiou: Certainly. The discussion I had with my Egyptian counterpart, Mr. Tarek El Molla, in Singapore was distinct from the trilateral talks held earlier with Cyprus, Greece, and Israel.

The primary agenda of our Singapore meeting was the Aphrodite gas field's development. We reviewed some modifications suggested by Chevron to the plan originally agreed upon in 2019. These specific changes, however, weren't accepted by the Republic of Cyprus, and we communicated our reasons to Chevron in a comprehensive letter, given they operate the Aphrodite field.

It's important to underscore that Egypt remains our primary destination for the Aphrodite gas field. Our discussions delved into using a portion of the field's gas for Egypt's domestic consumption, with an agreed gas sales contract price to Cyprus. Another segment would be directed to liquefaction facilities in Egypt for eventual international distribution as liquefied natural gas (LNG).

The core objective of our meeting was to reaffirm Egypt as the primary beneficiary and discuss the distribution ratios between domestic consumption and international sales via liquefaction.

Additionally, both of us participated in the Gas Tech 2023 conference and exhibition in Singapore – a prominent event for entities involved in the gas sector. Here, we were introduced to cutting-edge technologies and held further discussions, emphasizing the robust and ongoing energy collaboration between Cyprus and Egypt.

RIK Interviewer: Has there been any progress with Chevron, especially considering reports suggesting U.S. governmental pressure on Cyprus to accept Chevron's offer?

Minister Papanastasiou: It's crucial to understand that our discussions with Chevron are grounded in the Republic of Cyprus's strategic needs. One of the primary concerns is the current lack of infrastructure within the Cyprus Exclusive Economic Zone (EEZ). Our vision isn't just about this single Aphrodite field but ensuring flexibility and capability for the Republic of Cyprus's future ventures. Considering the gas discoveries within the Cyprus EEZ, there's an emerging need to prompt our partners to develop infrastructure in this zone. Such infrastructure would simplify the exploitation of future gas discoveries, unlike the challenges faced with Aphrodite due to the absence of infrastructure.

Indeed, there were public affirmations, notably via Reuters, indicating the U.S.'s inclination towards supporting Chevron's proposal. We're aware of these statements and comprehend the reasons behind this endorsement. However, our focus remains on the infrastructure deficit in Chevron's plans. These concerns have been repeatedly communicated. Recent consultations, initiated on September 1st and furthered during the 2023 Singapore conference, have led to a deeper mutual understanding with Chevron. We anticipate a comprehensive proposal from Chevron that not only elucidates their offer but also potentially addresses the Republic of Cyprus's infrastructure concerns.

RIK Interviewer: So, addressing these concerns essentially entails incorporating infrastructure development into Chevron's plan?

Minister Papanastasiou: Precisely. A more comprehensive approach would likely involve infrastructure development.

RIK Interviewer: Focusing on the recent trilateral meeting, there were clear statements from President Netanyahu regarding imminent decisions on exporting Israeli gas. He highlighted three main considerations: the East Med Pipeline, other gas export routes, and the electrical interconnection. Can you shed some light on the anticipated decisions and collaborations with Israel?

Minister Papanastasiou: Certainly. Prime Minister Netanyahu was explicit about Israel's intentions. They're keen on diversifying their export routes for gas, primarily targeting Europe. Israel has been exploring multiple alternatives, which are:

Each of these solutions has its own advantages and challenges, either tied to the infrastructure itself or linked to geopolitical considerations. Given Israel's timeline of 3 to 6 months for finalizing their export route, we've actively promoted the Cyprus solution. We've established a technical committee with Israel, which has met twice, primarily discussing the transportation of Israel's gas to European markets via Cyprus. Our proposition involves a pipeline connecting Israel's gas network to Cyprus, followed by the establishment of an LNG plant here. While it won't be a massive facility initially, there's scope for future expansion to accommodate increased demand. We're well-prepared to offer this solution.

RIK Interviewer: To clarify, we've presented this offer to Israel, and we anticipate their decision within the 3-6 month timeframe?

Minister Papanastasiou: That's accurate. However, it's imperative to understand that while states can decide on a strategic level, the real implementation lies with the companies that have access to the gas. Infrastructure development and utilization necessitate active participation from these companies, propelling gas through the infrastructure. The next steps involve engaging with these companies and presenting our solution, allowing them to conduct economic feasibility studies on utilizing this potential new infrastructure.