ExxonMobil executive: ‘government support necessary for East Med gas exploitation’

ExxonMobil director of frontier exploration Tristan Aspray on Wednesday called for the necessary level of support from Eastern Mediterranean countries in order to achieve an increase in natural gas production from regional gas fields, including those of Cyprus.

Asprey, whose comments came during a panel discussion on energy supply and security in Europe held during the Annual Economist Summit in Nicosia, said that new offshore discoveries in Israel, Cyprus and Egypt are relatively small and in deep water, meaning that billions of dollars are needed to exploit them.

“In order to do something like this, and to subsequently strengthen the supply of energy from the Eastern Mediterranean, support from the governments will be needed, with favourable terms and assurance of demand,” Aspray said.

Aspray explained that in recent years, the Eastern Mediterranean has already managed to become an energy provider, generating fuel not only for domestic use but also for supplying energy to Europe. This is especially the case when it comes to natural gas, where production has increased significantly.

Referring to the recent discoveries in the area but also to the company’s promising activity in Blocks 10 and 5 of the Cyprus EEZ, Aspray said that the region is becoming increasingly significant for ExxonMobil as well.

“The Eastern Mediterranean is becoming extremely important in the face of recent energy challenges,” Aspray said.

“Natural gas will continue to play an important role in the green transition due to reduced pollutants compared to other fuels, as a transition fuel in combination with renewable energy sources, and for its role in the development of hydrogen as an alternative fuel,” he added.

Meanwhile, Cypriot Energy Minister Natasa Pilides, who was also participating in the same panel, said that the option of a Floating Storage Regasification Unit (FSRU) being used in Cyprus has already been discussed with both the companies involved, as well as the European Commissioner for energy, expressing hope that the economic data will support this idea.

She also said that the results of block 6 are extremely important since they will confirm whether additional quantities are present.

What is more, the minister said that Cyprus is implementing a multidimensional energy strategy, the main objectives of which are to strengthen the security of energy supply, to do away with energy isolation and to operate the competitive domestic electricity market, as well as the domestic natural gas market.

“New technologies are also being promoted and the reduction of energy costs for households, businesses and public bodies is being pursued sought, among other things, by providing incentives for green investments,” Pilides said.

Referring to the “EuroAsia Interconnector”, Pilides explained that after years of work and close cooperation between the State and the implementing agency, the implementation of the flagship project is due to begin.

“The project is expected to connect Europe with the Middle East in the first half of 2028 and finally end the energy isolation of Cyprus,” she said.

“The operation of the “EuroAsia Interconnector” is also crucial to the EU’sinterconnection target of at least 15 per cent by 2030,” she added, referring to a measure designed to encourage EU countries to interconnect their installed electricity production capacity.

Moreover, Pilides also spoke on the recently-held East Mediterranean Gas Forum (EMGF), which took place in Nicosia last week.

The minister said that the common theme of many of the comments at the conference was the need for joint and well-coordinated actions, but also making the most of any potential synergies, which can accelerate the supply of gas from the Eastern Mediterranean to Europe at a very critical time.

For this purpose, she explained, the EU Energy Commissioner had separate meetings the day before with the companies operating in Cyprus’ EEZ.

“President Anastasiades has emphasised the government’s readiness to examine the possibilities and proposals for the connection of various natural gas fields in Cyprus, Israel, Egypt, and in the coming days also in Lebanon, either with existing or with newly built infrastructure, through which the gas can be exported to Europe,” Pilides concluded.