Cyprus: Aphrodite Set For Go-Ahead

Cyprus’ gas sector received a much needed boost on 17 March. Following months of disappointment Energy Minister Giorgos Lakkotrypis said that Houston-based Noble Energy, operator of the island’s sole offshore discovery, the 5 tcf Aphrodite field, is set to submit its development plan for the field by the end of the month.

MEES understands this plan will include a floating production, storage and offloading unit (FPSO) which will be linked via pipeline initially to Egypt, with BG’s 7.2mn tons/year LNG plant at Idku the most likely destination (see map p4).

Aphrodite is slated to produce 800mn cfd of gas over a 20-year development period. Of this 100mn cfd is slated to supply the Cyprus domestic market (in practice, it would make zero economic sense to build a 200km pipeline through 2,000ms-plus water depths to supply such a small volume) , with the rest exported to Egypt. These volumes could either supply the Egyptian domestic market or be re-exported as LNG. The theoretical pipeline connection to Cyprus would come at a later date, and in practice only happen if further finds can be tied in providing sufficient gas to fuel a long-mooted LNG liquefaction plant at Vasilikos on the southern coast of Cyprus. (CONTINUED - 589 WORDS)