Energean: Year of decisions in 2023 for new Eastern Mediterranean fields

Within 2023 and, most likely, in the first half of the year, Energean will make its decisions on how to develop the new natural gas fields it has discovered during its drilling program off of Israel’s coast.

As mentioned in the context of the 10th Energy Symposium held on Thursday, November 17 in Nicosia, Dr. Konstantinos Nikolaou, vice president of Energean in Greece, the export through a natural gas pipeline to Cyprus and further export by liquefaction to the European markets are among the prospects that the company is considering for the exploitation of the new fields. In such a development, the possibility of transmission is estimated to be in the order of 3.5 billion cubic meters (bcm) per year, with the prospect of implementation in the first half of 2027. Energean has already submitted to the competent authorities of the Republic of Cyprus an application for the conducting geophysical surveys along the proposed route of the pipeline.

Also read: Energean: Zeus field, new natural gas discovery in Israel

The other two scenarios that the company is considering are the export of natural gas to Egypt and the channeling of additional quantities, beyond the already contracted 7.2 bcm per year to the domestic market of Israel.

Three research drillings

To date, Energean has drilled three exploratory wells, all of which have resulted in discoveries. In particular, 11.75 bcm of potential utilizable natural gas reserves have been certified in the “Athina” field. In the “Zeus” field, initial estimates refer to 13.3 bcm of recoverable natural gas, while the “Mercury” field is estimated to host between 7 and 15 bcm of recoverable natural gas. Energean is currently drilling a 4th exploratory well at the Herakles target.

As mentioned by Dr. Nikolaou, Cyprus is a country of strategic importance for Energean’s activity. If the plan is implemented, the benefits for the Republic of Cyprus will be very significant. The country will become a natural gas hub without having to invest itself and will upgrade its geopolitical role at a time when the European Union is looking for new sources of natural gas supply. At the same time, the cooperation of Cyprus with Israel and Greece will be further strengthened, while if the Republic of Cyprus wants to use quantities of natural gas for domestic use, security of supply and competition will be strengthened for the benefit of the Cypriot economy and consumers . Furthermore, it is clear that new jobs will be created and economic activity will increase both during the project’s 3-year construction phase and its estimated 15-year duration.

Finally, Dr. Nikolaou stated that Energean is looking forward to the assistance of both the Cypriot and Greek governments in the effort to include the project in the financial tools created by the European Union.