Greek gas hub potential now realistic, DESFA actions show

Greece, for the first time, has shown true potential to soon establish itself as a regional gas hub and gateway for southeast Europe, judging by the results of gas grid operator DESFA’s recent auctions offering grid capacity reservations, as well as the operator’s non-binding market test for a prospective expansion of the country’s gas transmission network.

DESFA has prepared an extensive ten-year development plan that is fully aligned with the new market conditions taking shape, as well as with the company’s efforts to achieve energy-transition objectives, the operator’s administration has underlined at a news conference.

Greek gas exports increased by 15.09 percent in the first half of 2023, compared to the equivalent period last year, according to DESFA data presented at the news conference.

Also, DESFA’s non-binding market test for a prospective expansion of the country’s gas transmission network drew the participation of 27 companies, 17 of these from abroad, primarily central and southeast Europe, such as Bulgaria, Romania, Austria, Hungary, Slovakia, Germany, Cyprus, North Macedonia, as well as the USA.

Forty percent of the market test’s participants have never before been active in Greece’s natural gas market, DESFA announced.

Participants expressed interest for all the country’s gas grid entry points (Sidirokastro, Nea Mesimvria, Kipoi and Agia Triada), as well as for connections to Greece’s prospective FSRUs (Gastrade, Argo, Dioryga Gas, Elpedison).

Highlighting the Greek natural gas market’s export orientation, exports to Bulgaria totaled approximately 2.4 bcm in 2022, roughly half of Greece’s annual gas consumption last year, 4.9 bcm.

EastMed pipeline project still viable, Edison CEO says

ROME (Reuters) – A project to build a 2,000 km pipeline to bring natural gas from East Mediterranean fields to Europe is still alive, the CEO of Italian energy group Edison (EDNn.MI) said on Friday.

Edison CEO Nicola Monti said that the group, which is one of the promoters of the pipeline, was actively talking with Cyprus and Israel about the project.

Last month, the energy minister of Cyprus told Reuters the country was proposing a shorter pipeline to bring gas from Israel’s East Mediterranean fields to the island where the gas could be partially liquefied to be transported to the European markets.

The shorter connection could be seen as an alternative to the more ambitious EastMed pipeline.

“A link between Israel and Cyprus can be a first portion of the (EastMed) pipeline we are promoting. Because from Cyprus we could then connect with Crete and Greece,” Monti said, speaking with journalists on the sidelines of a meeting of energy industrial lobby Confindustria Energia.

He said he believed that the total costs of building the EastMed pipeline would be lower than the investment needed to build a shorter Israel-Cyprus connection, a liquefaction plant and the expenses of shipping the gas to European markets.

Reporting by Francesca Landini Editing by Keith Weir

EuroAsia Interconnector funds threatened by project delays

EU authorities appear to have issued a strict warning to Cyprus over major delays in binding scheduling terms for EuroAsia Interconnector, a project of strategic importance planned to interconnect the Greek, Cypriot and Israeli power grids.

According to sources, the EU has warned the Cypriot government that if appropriate decisions are not taken immediately to ensure that the project can be put back on track, then a decision offering 657 million euros worth of Connecting Europe Facility (CEF) funding for the PCI-listed project would need to be reviewed.

In response, Cypriot president Nikos Christodoulides held an emergency meeting last Friday with Nasos Ktorides, CEO of the EuroAsia Interconnector consortium, and the country’s energy minister George Papanastasiou.

Though no official announcements have been made, Cypriot press has reported that the government intends to engage directly and vigorously at the highest political level to secure the planned funding for the project.

Delays include Greek power grid operator IPTO’s entry into the EuroAsia Interconnector consortium with a 25 percent stake. A strategic agreement was announced at the end of June but the matter has not progressed further as due diligence remains unfinished.

The EU has insisted on IPTO’s participation as, on the one hand, the project will be connected to the Greek operator’s networks in Crete, and on the other, IPTO, it is believed, would ensure the project’s technical integrity and operational viability.

EuroAsia Interconnector has also been held back by the consortium’s delay in signing a contract with Norwegian company Nexans, to manufacture the project’s subsea cable.

This delay threatens to deprive EuroAsia Interconnector of its intended production slot at Nexans because the manufacturer faces high demand for cables from countries such as Germany and the Baltic countries as a result of Russia’s war in Ukraine.

 

 

 

PCI/PMI list preliminary ratings out, GREGY a borderline case

The European Commission’s Directorate-General for Energy, preparing a shortlist of electricity projects for a sixth PMI/PCI list, including Projects of Mutual Interest and Projects of Common Interest, has just staged a teleconference with representatives of projects vying for a place on the list.

As for the PMI list, the Brussels officials, in addition to preliminary ratings for candidate projects, also presented their criteria and formula applied for appraisals.

The presentation of these details was necessary as, under the revised TEN-E Regulation, new PMI selection criteria are being used for the first time for projects also involving non-EU members.

According to energypress sources, the GAP Interconnector, an Egyptian-Cretan power grid interconnection project plan been promoted by the Eunice group, was not appraised, as had been expected, because it has not secured Letters of Support from the Greek state.

GREGY, another Greek-Egyptian grid interconnection plan, which is being promoted by the Copelouzos group, was given a preliminary rating of 9.3, just below the 10-level score required for inclusion on the PMI list.

GREGY project officials have until June 30, when the PMI shortlist will be announced, to enhance their project’s dossier with additional details that could boost its rating and secure a place on the PMI shortlist. Copelouzos group officials are confident this can be achieved.

The Euroasia Interconnector, planned to link the Israeli, Cypriot and Greek power grids, has amassed the points needed to secure its inclusion on the PMI shortlist.

A total of five European projects, two of these with Greek interests, have achieved preliminary scores offering places on the PCI shortlist.

One of the two Greek projects, Terna Energy’s pumped-storage station project plan for Amfilohia, northwestern Greece, was included on the EU’s PCI list in 2013, while all indications suggest it will retain its place on the list’s sixth edition.

The Eunice group’s Ptolemaida BESS, a 250-MW energy storage facility planned for Ptolemaida, northern Greece, has scored highly for a place on the revised PCI shortlist.

Helleniq Energy planning power supply firm for Cyprus

Helleniq Energy, formerly Hellenic Petroleum (ELPE), is planning a double entry into the Cypriot energy market, as, besides its investment plans in the RES sector, the company is also preparing to launch a subsidiary active in electricity supply to businesses and industries.

For the time being, Helleniq Energy does not appear to be  planning to also enter the residential electricity market.

Helleniq Energy recently acquired two solar energy farms on Cyprus. “This investment, along with the establishment of our new electricity supply company in the Cypriot market, enables us to offer integrated energy solutions to our clientele and, at the same time, contribute to the acceleration of the country’s energy transition,” noted Andreas Siamisiis, CEO at Helleniq Energy.

These two Helleniq Energy initiatives in the Cypriot market are being developed in coordination as the electricity production stemming from the solar parks, offering a total capacity of 15 MW and annual green energy capacity estimated at over 27,000 MWh, will be received and marketed by the company’s prospective electricity supply subsidiary, sources informed energypress.

Helleniq Energy is backed by a two-decade presence in Cyprus’ fuel market, through its EKO Cyprus subsidiary, represented by a network of 97 petrol stations. EKO Cyprus is the country’s market leader with a market share of over 32 percent.

Helleniq Energy plans to develop a Cypriot RES portfolio totaling 100 MW.

 

Greek-US energy agenda focused on 3 projects

Three energy infrastructure projects, the Alexandroupoli FSRU in Greece’s northeast, an oil pipeline running from the Alexandroupoli port to Burgas, on Bulgaria’s Black Sea coast, and a Greek-Egyptian grid interconnection, were focal points in talks yesterday between Greek and American officials, as part of US Secretary of State Anthony Blinken’s official visit to Athens.

The two sides, meeting for the 4th round of a Greece-US Strategic Dialogue, appeared determined to push ahead with the three projects, propelled by Russia’s war on Ukraine, which has prompted Europe to move in a direction ending its reliance on Russian fossil fuels.

It was agreed that Athens and investors need to accelerate efforts for the aforementioned projects to further marginalize Russian energy supply to Europe.

Besides offering full support for the three energy infrastructure projects, US officials also expressed satisfaction about the recent launch of the Greek-Bulgarian IGB gas pipeline as well as ongoing plans for a pipeline to run from Greece to North Macedonia.

However, the US officials kept a distance from the discovery of gas deposits by Israel, Cyprus and Egypt in the east Mediterranean, as well as the East Med gas pipeline plan – which would connect Israel, Cyprus and Greece before crossing to Italy visa the Poseidon pipeline – presumably to avoid upsetting Turkey, despite problems that have weighed down US-Turkish ties of late.

 

US subdued on East Med plan despite anticipated revival

US Secretary of State Anthony Blinken has praised Greece’s leading role concerning the region’s energy transition in his opening remarks at the start of the 4th round of the Greece-US Strategic Dialogue, while underlining that the US is grateful for Greece’s unwavering support for Ukraine.

“Greece’s transition is a model for the region,” Blinken stressed, recalling that renewable energy sources such as wind and solar have, in recent times, provided half of Greece’s electricity needs, which he said was equivalent to taking 3 million cars off the roads.

The US Secretary of State also praised Greece’s role in supporting neighboring countries to diversify their energy sources by reducing their dependence on Russia, such as Bulgaria.

However, the US appears unmoved by Israel’s renewed interest for the development of the East Med gas pipeline, which would connect Israel, Cyprus and Greece before crossing to Italy visa the Poseidon pipeline. This project would greatly contribute to Europe’s efforts aiming to end the continent’s reliance on Russia for fossil fuels.

Contrary to expectations, the East Med project has not been included on the agenda of talks for Blinken’s official two-day visit to Athens, today and tomorrow, reliable sources informed.

Roughly a year ago, the US had announced it could not support this pipeline project, attributing this stance to a lack of feasibility. But the country’s willingness to maintain a balance in its regional geopolitical interests, especially between Greece and Turkey, is most likely the underlying reason.

Despite difficulties faced in its ties with Turkey, the US appears unwilling to support a regional gas pipeline project that would sideline this NATO ally.

Analysts expect new round of gas price increases this year

Analysts are projecting an eventual rise in gas prices over the next few months as a result of the combined effect of several factors, the main one being Europe’s almost entire dependence, these days, on imported LNG.

This LNG dependence, following Europe’s drift away from Russia, along with Europe’s limited LNG gasification infrastructure, until at least 2025, will inevitably lead to price increases at some point in 2023, analysts have noted.

Natural gas prices have been falling in recent times and are expected to, once again, drop below the price level of coal. This price descent, analysts believe, will reignite industrial activity in Europe, boosting gas demand.

Also, Chinese production, currently operating at below full capacity as a result of the country’s strict adherence, until recently, to a zero-Covid policy, is also expected to get back into top gear within 2023.

In addition, if Europe avoids recession, then global gas orders will skyrocket.

Taking these factors into account, Europe needs to maintain links with pipeline gas supply if energy security is to be ensured on the continent, analysts have noted.

This highlights the significance of projects such as the East Med gas pipeline plan, now seeming to be back in favor. It promises to connect Israel, Cyprus and Greece, over a total distance of 2,000 kilometers, before crossing to Italy via the Poseidon pipeline, a 210-kilometer stretch.

Israel injecting new life into East Med gas pipeline project

The newly elected Israeli government appears set to inject new life into the prospective East Med gas pipeline, its interest emerging one year after the US had announced it would no longer support the project, a stance now likely to be revised.

Israeli foreign minister Eli Cohen expressed the country’s interest in the project to his Greek counterpart Nikos Dendias during the latter’s official visit to Israel earlier this week.

The prospective pipeline is planned to cover a total distance of 2,000 kilometers, of which over 1,400 kilometers will run underwater, to connect Israel, Cyprus and Greece before crossing to Italy visa the Poseidon pipeline, a 210-kilometer stretch.

“We agreed to the exportation of Israeli gas through Greece and Cyprus, which will reach all of Europe. At a time of global energy crisis, it will strengthen our international position and bring a lot of money to the country,” Cohen, Israel’s foreign minister, announced following his meeting with his Greek counterpart.

Reiterating this interest, Israeli prime minister Benjamin Netanyahu, who has returned to the country’s top post after his Likud party formed a coalition with ultranationalist and ultra-Orthodox Jewish allies, announced that he instructed the head of Israel’s National Security Council to initiate a trilateral meeting of the leaders of Greece, Israel and Cyprus for energy-related talks.

Tel Aviv is seeking to reimpose itself as a force in eastern Mediterranean energy matters.

The East Med gas pipeline plan is likely to be on the agenda when US secretary of state Antony Blinken visits Athens on February 21 and 22.

East Med has gained renewed significance as Europe is looking for alternative sources of natural gas and major oil companies, especially US firms such as ExxonMobil, focusing on a venture south of Crete, are involved in hydrocarbon exploration efforts in the eastern Mediterranean.

Given the strained Israeli-Turkish ties, Israeli officials know well that the development of a gas pipeline across Turkey is not a viable option.

ExxonMobil drilling for gas off Crete may begin a year earlier

ExxonMobil could begin drilling at licenses offshore Crete a year earlier than planned as the American energy giant tends to adopt a more direct approach when exploring for natural gas, sector authorities have noted.

Such was the case at Cyprus’ Block 10, for which ExxonMobil conducted seismic surveys before skipping the 3D survey stage to go straight ahead with drilling that led to the discovery of the Glafkos deposit, the officials pointed out.

A consortium comprised of ExxonMobil and Helleniq Energy, formerly ELPE, holds licenses for two offshore Crete blocks, one west of the island, the other southwest. The consortium has commissioned PGS to conduct 2D seismic surveys at both these licenses. They are in full progress and are expected to be completed towards the end of January.

According their original plan, ExxonMobil and Helleniq Energy planned to follow up with 3D surveys at the end of 2023 or early in 2024. However, if ExxonMobil, the consortium’s operator, opts to skip the 3D surveys, initial drilling offshore Crete will begin sooner, in 2024, instead of 2025.

Elsewhere, in the Ionian Sea, a consortium made up of Helleniq Energy and Energean expects to have the results of 3D surveys at three blocks, Ionio, Kyparissiakos, and Block 2, by the end of 2023 or early in 2024. It will then decide if it will continue with initial drilling.

 

Energean moving ahead with wider exploration and development plan

Energean is moving ahead with its exploration and development program both in Israel and in other Mediterranean markets following the commencement of production at its Karish field, offshore Israel, and positive results from the neighboring “Zeus” and “Hermes” wells.

Energean has reported significant developments regarding the installation of a second processing line at its Karish North field, which promises to upgrade production to 8 billion cubic meters and 32,000 barrels of oil in total. The upgrades are expected to be completed by the end of 2023.

Along with its first-half results, the company has noted its next step is first gas production from the NEA/NI license in Egypt. Subsea installations have been completed and gas production is expected to commence by the end of this year.

Meanwhile, Energean plans to conduct four more drilling efforts at its Abu Qir licence, also in Egypt, in 2023 and 2024.

As for its offshore Cassiopea license in Italy’s Strait of Sicily, Energean plans to begin gas production in the first half of 2024 with an objective to boost its production in Italy from 9,300 bpd at present to 20,000 bpd.

Energean has made two important discoveries at its Athena and Zeus offshore Israel licenses, both west of Karish. The Athena field has been certified, by an independent appraiser, as having potential reserves (2C) of 11.75 bcm of natural gas, while, two weeks ago, an initial estimate of 13.3 bcm of natural gas was made for the Zeus field.

Energean has also made a third discovery further south, at Block 31 (Hermes deposit), estimated to be holding between 7 and 15 billion cubic meters. Drilling at the Hercules well, in the same area, has been in progress over the past few weeks.

Energean has announced it will have a report, from an independent appraiser, on the potential of new discoveries in early 2023, the company’s aim being to present a specific development plan in the first half of the year.

Options being considered for additional volumes include the sale of additional gas to the Israeli market, exports to Egypt, as well as exports to Cyprus with the prospect of liquefaction for sales of quantities to European markets.

Energean has already signed contracts for the supply of 7.2 billion cubic meters of gas to Israel. Significant quantities are expected to start reaching customers in 2023.

IPTO set to join EuroAsia Interconnector by year’s end

Power grid operator IPTO is expected to join EuroAsia Interconnector, a Cypriot company established to link the Greek, Cypriot and Israeli power grids, by the end of the year.

IPTO’s anticipated board approval of the company’s agreement with EuroAsia Interconnector is the next step in IPTO’s process of acquiring a stake in the company, expected to be at least 25 percent.

EuroAsia Interconnector accepted an official proposal submitted by IPTO in late July. Speaking at the recent Thessaloniki International Fair, IPTO president Manos Manousakis noted EuroAsia Interconnector’s acceptance of the Greek power grid operator’s terms ensures IPTO’s participation in the Greek, Cypriot and Israeli power grid interconnection, a project of strategic importance.

Once the IPTO board approves the agreement, the operator will need to conduct due diligence, expected to take place within the next month or two.

The deal for IPTO’s acquisition of a stake in EuroAsia Interconnector is expected to include terms for a further stake increase in the Cypriot company.

The agreement’s technical and financial details promise to propel the development of the Crete-Cyprus segment of the overall project, the most mature of all segments.

The Crete-Cyprus segment will end the electricity isolation of Cyprus, the EU’s only remaining member state still disconnected from fellow member states, and also boost Greece’s role as an electricity transmission hub in southeast Europe.

A total of 898 kilometers of subsea cables are planned to be installed at a depth of up to 3,000 meters for the Crete-Cyprus grid link.

 

EastMed pipeline consortium set to apply for PCI status

Boosted by the prospect of a significant gas deposit discovery off the Cyprus coastline, IGI Poseidon, the consortium behind the prospective EastMed gas pipeline, a 50-50 venture involving Edison and DEPA International Projects, is set to submit an application seeking Project of Common Interest (PCI) status, which assures EU funding support, for the gas pipeline project.

Russia’s invasion of Ukraine, skyrocketing oil and natural gas prices, as well as the EU’s efforts aiming for greater energy independence, with the backing of the US, are developments that have created new market conditions favoring the EastMed gas pipeline’s development.

On Monday, the ENI-Total consortium announced it has detected natural gas at Block 6 off the Cypriot coast, noting its preliminary estimates indicate the existence of a gas deposit measuring 2.5 trillion cubic feet, a significant quantity.

This gas deposit discovery is crucial for the sustainability prospects of the EastMed gas pipeline, intended to transport gas from deposits in the east Mediterranean to Europe.

According to a recent update from the IGI Poseidon consortium, the EastMed project’s licensing procedure and technical plans are nearing completion and should be finalized by the end of 2022. The EastMed gas pipeline could begin operating within 2027, the consortium added.

PCI-related funding support from the EU for the EastMed gas pipeline’s development would be crucial as this is a high-cost project, budgeted, most recently, at 5.2 billion euros.

Israeli power grid operator officials in Athens for grid link

The energy ministry and power grid operator IPTO seem determined to press ahead with two major grid interconnection projects, one to link Greece with Cyprus and Israel, the other Greece and Egypt, REPowerEU, Europe’s strategic plan aiming to end the continent’s reliance on Russian fossil fuels through energy-source diversification, being the driving force behind this action.

IPTO, according to sources, is just about ready to forward a proposal for participation in EuroAsia Interconnector, a consortium established for the development of the Israel-Cyprus-Greece grid interconnection.

Highlighting the activity concerning the project, officials of Israel’s power grid operator are in Athens for talks today with IPTO’s chief executive Manos Manousakis and other company officials.

The Israeli officials will also take part in an ensuing meeting with Greek energy minister Kostas Skrekas.

Israeli interest in the grid interconnection has grown following the European Commission’s decision to make available 657 million euros for the project’s Cyprus-Greece section.

The Israel-Cyprus-Greece grid interconnection will facilitate RES development in Israel, promising to contribute to the EU-27 aim for an end of Europe’s reliance on Russian fossil fuels.

The grid link, to measure 1,208 kilometers and offer a 1-GW capacity, will also end Cyprus’ energy isolation and offer energy security to Israel.

It is budgeted at 2.5 billion euros with completion slated for the end of 2025, if procedures go according to plan.

Manousakis, the IPTO chief executive, plans to visit Cairo during June for talks with officials at Egypt’s power grid operator, EETC. Progress on the prospective Greek-Egyptian grid link has been smooth. The two sides are now preparing for a feasibility study.

Skrekas, the energy minister, is expected to be in Egypt sooner, to take part in the East Med Gas Forum, scheduled for June 14 and 15. He is expected to meet with Egyptian energy ministry officials on the sidelines of this event, for talks on the Greek-Egyptian grid link.

This project, based on a proposal from the Copelouzos group, entails a subsea cable from Egypt to the Greek capital.

It is budgeted at 3.5 billion euros and will offer a 3-GW capacity for renewable energy, which will also be exported to other EU member states through grid interconnections linking Greece with neighboring countries.

Talks in progress for Italy’s East Med gas pipeline entry

Talks are in progress for Italy’s official entry into the East Med gas pipeline project, a prospective 2,000-km pipeline planned to carry natural gas to Europe via Greece, Cyprus, Israel and Italy, energypress sources have informed.

Greece, Cyprus and Israel signed an agreement for the project’s development in 2020, without Italy’s participation, as the country’s government at the time, citing environmental issues, had reacted against the project reaching its shores.

Italy’s current Prime Minister, Mario Draghi, recently stressed that the East Med gas pipeline needs to be pursued as a result of Russia’s invasion of Ukraine.

The project has now gained political support in Italy, through a resolution issued in parliament urging the government to co-sign the transboundary agreement, energypress sources informed.

Italy has revised its stance on the East Med project as a result of a recent EU-27 decision to drastically reduce Europe’s reliance on Russian natural gas.

Italy could officially announce, in May, its intention to co-sign the East Med agreement, sources informed.

Greece, Cyprus, Israel look to push ahead with key projects

The prospective East Med gas pipeline and a subsea electricity grid interconnection, projects that would link Israel with Cyprus and Greece and which are being heavily promoted as a result of the EU’s new energy policy, aiming to end the continent’s reliance on Russian gas as soon as possible, are expected to dominate the agenda of today’s trilateral meeting in Jerusalem between the energy ministers of Greece, Cyprus and Israel.

Energy company representatives will, for the first time, also be participating in a trilateral meeting of energy ministers involving the three countries, highlighting the determination of all three countries, and the EU, for swift progress on projects and agreements that would contribute to greater energy diversification for Europe.

Greek energy minister Kostas Skrekas will be accompanied by Kostas Xifaras, chief executive of gas company DEPA Commercial; Mathios Rigas, CEO of upstream company Energean; and Manos Manousakis, CEO of Greek power grid operator IPTO.

Representatives of corresponding Cypriot and Israeli companies will also be taking part in today’s trilateral meeting.

Prospects for the development of the EuroAsia electricity grid link promising to connect the three countries have grown considerably as Israel appears to have swept aside previous reservations. Israel has wanted the completion of the Crete-Cyprus link as a prerequisite ahead of further development.

 

 

Greece, Cyprus, Israel prepare to discuss East Med, power grid link

The East Med gas pipeline and a subsea electricity grid interconnection to link Israel with Greece and Cyprus, projects whose prospects have grown as a result of the EU’s new energy policy, aiming to end the continent’s reliance on Russian gas as soon as possible, are expected to dominate the agenda at an upcoming trilateral meeting between the energy ministers of Greece, Cyprus and Israel.

The session is planned to take place in a fortnight’s time or immediately following the Greek Easter period, culminating on April 24.

Italian Prime Minister Mario Draghi recently stressed that development of the East Med gas pipeline, a prospective 2,000-km pipeline planned to carry natural gas to Europe via Greece, Cyprus, Israel and Italy, needs to be pursued as a result of Russia’s invasion of Ukraine.

A consortium formed by Greek gas company DEPA and Italy’s Edison is continuing its studies on the East Med project plan.

As for the subsea electricity grid interconnection, Cyprus and Israel have pushed for its development to end their energy isolation. The European Commission has already approved funding worth 657 million euros for the prospective project’s section to run from Greece to Cyprus.

Greek prime minister Kyriakos Mitsotakis and energy minister Kostas Skrekas will be involved in two key meetings in Athens today, to focus on energy matters as a result of Russia’s war on Ukraine, with Israel’s alternate prime minister and foreign affairs minister Yair Lapid, as well as US under secretary of state for political affairs Victoria Nuland.

 

East Med regains attention as EU reshapes gas strategy

The energy crisis, skyrocketing natural gas prices, and the EU’s new energy policy, aiming to end the continent’s reliance on Russian gas as soon as possible, are developments creating bigger prospects for the East Med pipeline, whose development could upgrade Greece’s role in the energy sector as well as geopolitically.

Importantly, higher gas prices have boosted the feasibility of the East Med pipeline project, a prospective 2,000-km pipeline planned to carry natural gas to Europe via Greece, Cyprus, Israel and Italy, as was supported yesterday by Edison CEO Nicola Monti.

The US withdrew its support for the project in January, citing technical and commercial sustainability concerns. Many analysts have forecast gas price levels will remain elevated for an extended period, which could make East Med a profitable investment for companies that construct and operate the pipeline.

Earlier this week, the European Commission announced its ambitious Repower EU roadmap, prioritizing the search for alternative natural gas sources and supply routes as a means of ending the continent’s reliance on Russian gas.

East Mediterranean gas deposits are well positioned, close to European markets. It remains unclear as to whether it would be more beneficial to transport these gas quantities in the form of LNG or via the East Med pipeline.

Given the bolstered bargaining power of gas producers and LNG exporters, the EU could be better off pursuing a pipeline solution. Also, Shell’s forecast of an LNG shortage in international markets from 2025 onwards should be kept in mind.

Heraklion Port Authority e-welcomes Poseidon Med II

A technical workshop was organized by the Heraklion Port Authority, which participates as a satellite port at the EU co-funded programme. This is the final dissemination event that shared the work to date and milestones of the Action to key stakeholders, seeking their input and comments to the completed activities.

In an atmosphere of consensus that the port should embrace alternative fuels in order to remain both sustainable and competitive, issues like the Presidential Decree on safe LNG Bunkering, training competencies, port manuals and the port’s masterplan to accommodate LNG, were thoroughly addressed.

The virtual event did not focus only on the technical pillars of the Action but moreover shared, with all participants, the basics of LNG as a marine fuel and also the project’s key features and attributes.

Mr. Minas Papadakis, CEO made a reference to the concerns stemming from the proximity of the infrastructure to the populated areas around the port; yet he continued by highlighting the positive impact of the Action on the sound profile of the Port of Heraklion. Mr. Papadakis concluded by expressing his full support to the deliverables of Poseidon Med II and welcomed the next era for LNG as fuel, which he characterised as being ‘far from transitional’ as regards to its application in the maritime transportation sector.

Mr. Stavros Lirintzakis, Project Manager on behalf of the Port of Heraklion, supported the above positions and proudly advised the audience that despite the difficulties, the management of the Port Authority and its stakeholders look forward to welcoming similar projects in the future.

Poseidon Med II project is a practical roadmap which aims to bring about the wide adoption of LNG as a safe, environmentally efficient and viable alternative fuel for shipping and help the East Mediterranean marine transportation propel towards a low-carbon future.

The project, which is co-funded by the European Union, involves three countries Greece, Italy and Cyprus, six European ports (Piraeus, Patras, Lemesos, Venice, Heraklion, Igoumenitsa) as well as the Revithoussa LNG terminal.

The project brings together top experts from the marine, energy and financial sectors to design an integrated LNG value chain and establish a well-functioning and sustainable LNG market.

Paving the way for LNG bunkering in Cyprus

A technical workshop was organised by the EU co-funded project Poseidon Med II on the afternoon of 10th November during the EMC 2021 Conference and Exhibition, in Nicosia. This was an onsite live event aiming at disseminating the Action’s milestones while presenting the synergies in the gas sector that Poseidon Med II has fostered on the island and the wider Eastern Mediterranean area. 

With more than 40 registered attendees, the event was opened by Ms Eliana Charalambous Tanos, Acting Permanent Secretary to Mr Vassilis Demetriades, Shipping Deputy Minister to the President. At her speech she underlined the strategic importance of LNG to Cyprus while explicit reference was made to the Fit for 55 EU package and the framework currently being shaped by the regulators on decarbonization and climate change. 

Mr. G. Polychroniou, Executive Director, Strategy & Business Development at DEPA COMMERCIAL SA addressed the audience afterwards with an introductory note on what the project has achieved to date, also expressing the view that LNG is not a transitional fuel but rather a viable option that will strengthen the position of East Med in the pathway towards a low carbon economy. 

Mr. N. Argyrou, General Manager from Bunkernet undertook the role of Moderator giving the floor to 4 highly respected panelists, to position themselves on the future energy prospects of Cyprus by answering a series of questions. 

Dr. Solomonidis, Chairman of the BoD at Rogan Associates shared in his presentation the project’s activities from the side of infrastructure with a primary focus on the new LNG bunkering position at Vassiliko terminal. He also commented on the contribution of PMED II towards the readiness of the infrastructure in Vassilikos to receive LNG, but also on the next steps required to promote LNG as a marine fuel on the island. 

Dr. Kassianides, Chairman at Cyprus Gas Public Company (DEFA) confirmed that bunkering is certainly a priority for DEFA and they shall invest in relevant functions in the near future. As regards to the gas reserves found, Dr. Kassianides supported that quantities are still small to monetize the reserves but did not exclude any of the future scenarios if the market conditions are positive.

Mr. M.Demetriades, Non-Executive Director at Fameline Holding Group commented on the new project of Navigas under the Fameline Group called ‘BlueHubs’ and expressed the firm commitment of the Group to stay close to the party building the LNG terminal. He also pinpointed that Cyprus is a big ship management centre. 

Mr. Zacharias Siokouros, CEO at the Cyprus Marine & Maritime Institute (CMMI) concluded the panel discussion with an insight on the current and future projects that the Institute is involved to support the energy vision of Cyprus. A flagship initiative is the establishment of the Cyprus Decarbonisation Hub to foster new collaborations and research on alternative fuels and technology advancements in shipping.

 

 

Eastern Mediterranean Conference & Exhibition makes Cyprus return

EMC, the Eastern Mediterranean Energy conference and exhibition, will take place in Nicosia, Cyprus, from 10 – 12 November 2021. EMC is the essential platform for more than 3,000 domestic and international energy stakeholders and investors to meet, engage, share new ideas and create new partnerships.

Thousands of industry leaders and innovators will converge as part of the effort to drive the industry towards a more sustainable future.

The IEA – International Energy Agency – has once again confirmed that natural gas demand will continue to increase on a global level by nearly 15% by 2030, replacing coal and oil and complementing renewables as the world transitions towards a more sustainable and cleaner energy mix. All of this puts EMC at the heart of regional energy transformation and brings together thousands of industry experts to debate the industry’s immediate future.

The Eastern Mediterranean Conference & Exhibition 2021 has confirmed that it will take place under the auspices of the Ministry of Energy, Commerce and Industry, Republic of Cyprus, and that the Minister of Agriculture, Rural Development and the Environment, Costas Kadis, will be delivering the Opening Keynote Welcome Address at the Plenary Session on the morning of 11 November 2021. With so many exciting new discoveries in the Eastern Mediterranean basin, the strategically located island of Cyprus is poised to become a sustainable gas, offshore and energy partner for its European partners.

EMC 2021 has support from the entire oil & gas and energy sectors, of which many have had explorations in Cyprus and the Eastern Mediterranean region. The event has generated a great degree of industry interest, with the exhibition hosting 100 exhibiting companies and around 3000 international visitors. The conference has six plenary sessions with 28 technical sessions and 20 workshops, with an expected attendance of 400+ international delegates.

The exhibition will welcome companies operating in the following sectors: OIL & GAS, MIDSTREAM & SHIPPING, RENEWABLES (HYDRO, SOLAR, WIND, GEOTHERMAL & BIOMASS) & POWER, NATURAL GAS, ENERGY TRANSITION (HYDROGEN, BIOFUELS & E-FUEL, CCUS).

With the development and investment in cleaner energy in the Eastern Mediterranean, attending EMC provides the perfect platform to connect with the leading natural gas, renewables and hydrocarbon stakeholders in the region.

For more information or to register for the event, please visit https://buff.ly/3Ag0xE5

 

ELPE close to acquiring 32% stake in Cyprus LPG facility

ELPE (Hellenic Petroleum) is close to acquiring a 32 percent stake in an LPG facility being developed in Cyprus’ Vasiliko area by the Petrolina group, the country’s biggest petroleum company, owned by the Lefkaritis family.

ELPE’s chief executive Andreas Siamisiis is expected to visit Cyprus today for talks on the deal. Both sides are awaiting the European Commission’s approval.

The unit, to be equipped with storage spaces totaling 5,000 square meters and bottling systems to meet the needs of all LPG trading companies on Cyprus, is expected to be ready to operate towards the end of the year.

The ELPE group, which has closely monitored energy-sector developments on Cyprus for quite some time now, has already invested over 150 million euros in the country.

Last year, ELPE made investments for a new petroleum product distribution facility in the Vasiliko area, network modernization, as well as acquisitions for greater trading activity with industrial consumers.

The Petrolina group, founded in 1961 as FINA (Cyprus), was acquired by the Lefkaritis group in 1983 and renamed Lina Ltd before it was named Petrolina (Holdings) Ltd in 1999.

The company now owns liquid-fuel storage and management facilities in Vasiliko, following an investment of more than 80 million euros that was completed several years ago.

In the retail market, Petrolina owns 100 petrol stations operating throughout Cyprus under two company names, Petrolina and Agip.

Petrolina has worked closely, for decades, with Italian giant ENI, an association that includes exclusive import and trading rights for ENI’s lubricants, greases and liquids in the Cypriot market.

Petrolina was listed on the Cypriot stock exchange in December, 2020. Late last year, the company entered the Greek market, acquiring fuel and liquid gas retailer Silk Oil following many months of negotiations.

EuroAsia taking on extra compatibility costs for Cyprus-Crete grid link

RAE, the Regulatory Authority for Energy, has updated details of a Cross Border Cost Allocation (CBCA) agreement concerning the Cyprus-Crete electricity grid interconnection plan, committing the project’s promoter, EuroAsia Interconnector, a consortium of Cypriot interests, to assume any additional compatibility costs that may arise during the development of this segment.

The development eliminates the prospect of action by EuroAsia against Greece following a decision by the Greek government, over a year ago, to detach the Crete-Athens segment from EuroAsia’s wider project, planned to link Greece, from Crete, with Cyprus and Israel.

As a result of the withdrawal, the Crete-Athens segment is now being independently developed by IPTO, Greece’s power grid operator.

Project disagreements between Greek and Cypriot officials have persisted for years but escalated into legal threats and action when, during his recent tenure as energy minister, Costis Hatzidakis decided to withdraw the Crete-Athens segment for independent development.

Following more recent negotiations, EuroAsia appears to have fully accepted the removal of the Athens-Crete segment from the wider project it is spearheading.

Israel, for some time now, has made clear its interest to link the Cyprus-Israel grid interconnection with the Crete-Athens section.

EastMed alliance broadens, eight countries express support

Support for the EastMed pipeline, planned to transport natural gas from offshore Levantine Basin gas reserves in the southeast Mediterranean to Greece and further into Europe, is growing in numbers with an initial Greek-Israeli-Cypriot alliance promoting this project now joined by five additional partners, Bulgaria, Romania, Hungary, Serbia and North Macedonia.

Energy ministers representing these eight countries forwarded a letter of support for the EastMed project to the European Commissioner for Energy Kadri Simson late last week, Greece’s energy and environment minister Kostas Skrekas has told local media.

The pipeline, to be developed by IGI Poseidon SA, a 50-50% joint venture between Greek gas utility DEPA and Italian gas utility Edison, is planned to cover a 1,470-km distance.

IGI Poseidon plans to develop EastMed all the way to Italy via Cyprus, Crete, the Peloponnese, mainland Greece and Epirus, the country’s northwestern flank.

This latest move, bringing the eight energy ministers together for the joint letter, was initiated by Skrekas, Greece’s energy minister, sources informed, following an initiative taken two months earlier by his Israeli counterpart Yuval Steinitz to organize a joint virtual conference involving ministers of all eight countries.

In their letter to Simson, the EU energy commissioner, the eight ministers highlight the importance of EastMed, noting the project promises to contribute to the wider region’s energy security and offer benefits to consumers as a result of increased competition and reduced natural gas price levels.

Regional gas interconnections, including the Greek-Bulgarian IGB, Bulgarian-Serbian IBS, Bulgarian-Romanian IBR and the Romanian-Hungarian IRH would be utilized to extend EastMed’s reach, the letter notes.

Greece and North Macedonia are currently planning a new gas pipeline interconnection whose Greek segment is being promoted by gas grid operator DESFA.

IPTO seeking active role in Cyprus, Israel, Egypt grid interconnections

Power grid operator IPTO is seeking an active role in the grid interconnections to link Greece with Cyprus and Israel, as well as Egypt, the company’s chief executive Manos Manousakis told yesterday’s Power and Gas Supply Forum, an online event staged by energypress.

Responding to questions as to whether IPTO is considering to acquire an equity stake in these projects, Manousakis noted that the operator’s role is to ensure the interoperability of the Athens-Crete and Crete-Cyprus power grid interconnections, a commitment made by the Greek government back in October, 2019.

The European Commission, engaged in ongoing exchange with IPTO in an effort to understand the level of maturity of these grid interconnection projects and, primarily, the interoperability of its systems, has mentioned that Brussels would be interested in the equity involvement of a European TSO, Manousakis informed.

Other priorities at IPTO include upgrading and expanding Greece’s grid interconnections with neighboring countries, which would boost cash flow in the domestic energy market through electricity exports, the chief executive noted.

A tender for the development of the local segment of a second transboundary grid interconnection linking Greece and Bulgaria, from Nea Santa, northeastern Greece, to Bulgaria’s Maritsa area in the south, will be completed this year, Manousakis informed.

New interconnections with Albania and North Macedonia are also being examined at present, he noted.

In addition, IPTO is close to signing a cooperation agreement with Italian operator TERNA for the development of a second Greek-Italian grid interconnection.

Furthermore, plans for an upgrade of the Greek-Turkish interconnection, a project linking the European and Turkish transmission systems, are also maturing, the IPTO chief informed.

 

 

Gas developments in the East Med

The international oil companies (IOCs) are still reeling under the impact of low oil and gas prices and massive losses and asset write-offs during 2020. ExxonMobil, under increasing pressure, is considering further spending cuts and even a shake-up of its board.

The path to full recovery will be slow and at the end of it, in 2-3 years, the IOCs will be different, placing more emphasis on clean energy and renewables.

In the meanwhile, around the East Med, Egypt is forging ahead. It has signed a new exploration agreement with Shell for an offshore block in the Red Sea. This is in addition to the 22 agreements signed during 2020 that included major IOCs such as ExxonMobil, Chevron, Shell, BP, Eni and Total. Moreover, EGPC and EGAS are planning to offer onshore and offshore exploration blocks for bidding in February.

This continuing activity led to the discovery of 47 oil and 15 natural gas fields in 2020, 13% more than in 2019, despite Covid-19.

Tareq El-Molla, Egypt’s petroleum minister, signaled earlier this month Egypt’s intention to expand its petrochemicals sector to take advantage of the country’s expanding hydrocarbon resources. Egypt has updated its petrochemical national plan until 2023 to meet the increasing prospects in this industry.

LNG exports

Egypt has also benefited from the recent increase in LNG prices, resuming exports from its liquefaction plant at Idku, with most exports going to China, India and Turkey. The country is also ready to resume exports from its second liquefaction plant at Damietta starting end February. This has been lying idle since 2012 due to disputes that have now been resolved.

LNG exports will mainly utilize surplus gas from the Zohr gasfield and possibly imports from Israel, should prices allow it.

In fact, the resumption of LNG exports from Idku relieved some of the pressure on Egypt’s gas market, which is in oversupply partly due to impact of the pandemic, but also due to falling gas demand in Egypt’s power sector and growth in renewable energy.

El-Molla said that Egypt is planning a revival of its LNG exports. But this depends greatly on what happens to global markets and prices.

The International Energy Agency (IEA) said that the Asian LNG demand and price spike in January was a short-term phenomenon and it is not an indicator that global demand will rebound in 2021. The IEA expects only a small recovery in global gas demand this year, after the decline in 2020, partly due to the pandemic. But given ongoing concerns over the pandemic, the rate of gas demand growth will remain uncertain. The IEA said the longer-term future of LNG markets remains challenging.

Gas from Israel

Chevron – having acquired Noble Energy and its interests in the region last year – with Delek and their partners in Israel’s Leviathan and Tamar gasfields, signed an agreement to invest $235million in a new subsea pipeline, expanding existing facilities. According to an announcement by Delek, the pipeline will connect facilities at Israeli city Ashod to the EMG pipeline at Ashkelon, enabling Chevron and its partners to increase gas exports to Egypt to as much as 7billion cubic meters annually (bcm/yr).

The partners signed agreements last year to export as much as 85bcm/yr gas to Egypt over a 15 year period. Gas supplies from Israel to Egypt started in January last year.

It is not clear at this stage if new agreements will be reached to fully utilize the increased export capacity from Israel to Egypt, but given Egypt’s gas oversupply this may not be likely.

These developments, though, show the vulnerability of Cyprus and the weakness of relying on trilateral alliances with Egypt and Israel for its gas exports.

EastMed gas pipeline

This is being kept alive by regional politicians. Only this week, Greece, Cyprus, Israel, Bulgaria, Hungary and Serbia confirmed their support for the EastMed gas pipeline.

While such developments are good politically, bringing like-minded countries around the East Med closer together, they are not sufficient to advance the project. This requires private investment and buyers of the gas in Europe. None of these is forthcoming, because the project is not commercially viable. By the time the gas arrives in Europe it will be too expensive to compete with existing, much cheaper, supplies.

Europe is also moving away from gas and from new gas pipeline projects. Catharina Sikow Magny, Director DG Energy European Commission (EC), covered this at the European Gas Virtual conference on 28 January. Answering the question how much natural gas will the EU need in the future, she said ZERO. She was emphatic that with the EU committed to net zero emissions by 2050, by then there will be zero unabated gas consumed in Europe. In addition, with the EU having increased the emissions reduction target from 40% to 55% by 2030, the use of gas in Europe will be decreasing in order to meet the 2030 and 2050 climate targets. She said that ongoing natural gas projects are expected to be completed by 2022 – with no more needed after that.

With exports to global markets becoming increasingly difficult, there are other regional options to make use of the gas discovered so far around the East Med, including power generation in support of intermittent renewables and petrochemicals, as Egypt is doing. The newly constituted East Med Gas Forum (EMGF) should place these at the heart of its agenda.

What about Cyprus?

Hydrocarbon exploration activities around Cyprus are at a standstill, partly due to the continuing impact of Covid-19, but also due to the dire state of the IOCs and the challenges being faced by the natural gas industry in general.

This lack of activity in resuming offshore exploration may be a blessing, taking the heat off hydrocarbons, while priorities shift to discussions to resolve the Cyprus problem and the Greece-Turkey maritime disputes.

Dr Charles Ellinas, @CharlesEllinas

Senior Fellow

Global Energy Center

Atlantic Council

3 February, 2021

 

Greece, Israel eyeing broader alliance for Balkans, central Europe

The Greek-Israeli energy alliance is broadening its scope by aiming for the establishment of a Greek gateway to facilitate Israeli gas supply to the Balkan region and, by extension, central Europe.

This objective, part of strong diplomatic relations between the two countries in energy, was confirmed during a recent virtual meeting between Greece’s newly appointed energy minister Kostas Skrekas and his Israeli counterpart Yuval Steinitz.

Their bilateral talks will be followed up by broader meeting today to involve the energy ministers of Greece, Israel, Cyprus, Serbia, Bulgaria, Romania, North Macedonia and Hungary.

The participating officials will seek to lay the foundations for a closer energy alliance that would facilitate distribution from Israel’s Leviathan gas field via alternate routes – the Alexandroupoli FSRU and the IGP – to soon be offered by Greece.

The aforementioned Balkan and central European countries are extremely keen on securing alternative supply routes, diplomatic sources informed.

Much work is needed by Israel and Greece to establish energy alliances with Balkan countries, but a first step will seemingly be taken today.

EuroAsia project moving again, Egypt present with EuroAfrica

Development of the wider region’s two major electricity grid interconnections, the EuroAsia Interconnector, to link Greece, from Crete, with Cyprus and Israel, and EuroAfrica Interconnector, a complementary project to link Cyprus with the African continent via Egypt, was discussed at a meeting in Nicosia yesterday between Greece’s energy minister Costis Hatzidakis and his Cypriot counterpart Natasa Pilides.

Progress at EuroAsia Interconnector, whose launch is scheduled for late in 2023, was held back by a Greek-Cypriot dispute prompted by Greek power grid operator IPTO’s withdrawal of the wider project’s Crete-Athens segment from EuroAsia Interconnector, a consortium of Cypriot interests.

The Crete-Athens segment is now being developed as a national project by IPTO and subsidiary Ariadne Interconnection.

EuroAsia Interconnector and EuroAfrica Interconnector promise to develop Cyprus into an electricity hub. A 310-km cable from Israel and a 498-km line from Egypt will converge at coastal Kofinou, in Cyprus’ south. From this hub, an 898-km cable is planned to link Cyprus with Crete before reaching Athens.

At yesterday’s meeting, the Greek and Cypriot energy ministers primarily focused on EuroAsia Interconnector, the Crete-Cyprus-Israel project, at a more mature stage.

Budgeted at 2.5 billion euros, this project, regarded as an EU Project of Common Interest, will promote regional energy security and further RES penetration in all three participating countries, Hatzidakis noted. The EU, it is estimated, will need to contribute at least half the project’s value.

Cyprus is the only EU member state without electricity grid interconnections.

Germany’s Siemens was awarded a procurement contract last May for EuroAsia Interconnector’s HVDC converter stations, budgeted at 623 million euros.

EuroAsia Interconnector was initially planned to offer 2 GW but this capacity has been halved, for the time being, as the other 1 GW will be used for the Crete-Athens grid interconnection.

EuroAsia Interconnector’s Israel-Cyprus segment is budgeted at 900 million euros while the cost of the bigger Cyprus-Crete section is estimated between 1.6 and 1.8 billion euros.

 

US investments in Greek RES sector rising, LNG imports up

New US investments in Greece’s RES sector are on the rise, the energy ministry has stressed following a meeting yesterday between Greek energy minister Costis Hatzidakis and the U.S. Ambassador to Greece, Geoffrey Pyatt, for a discussion on major energy project plans in the wider region and the related American investment activity.

U.S. companies such as ONEX, Black Summit, with support from DFC (International Development Finance Corporation), Quantum Energy Partners, National Energy, General Electric, Fortress Investment Group, Blink and Tesla are all currently pursuing investments in the Greek market.

Hatzidakis, the energy minister, expressed satisfaction over the level of foreign investments in Greece, noting U.S. participation has significantly increased, especially in the energy sector.

Last month, 547 Energy, an American renewable energy venture backed by Quantum Energy Partners, participated for a third time in a row in a RES auction staged by RAE, the Regulatory Authority for Energy, adding 107 MW in wind energy capacity to its Greek portfolio for a current tally of eight RES projects and 390 MW, the energy ministry noted.

National Energy is drawing American funds to develop wind and solar energy projects in Greece with a total capacity of 270 MW, the statement added.

Also, the energy ministry noted, General Electric has supplied equipment for a wind energy farm in Fokida, west of Athens, a project being partially financed by the Fortress Investment Group; Blink recently began an investment plan in the electromobility sector, for rechargers and other equipment; while Tesla, a producer, amongst other things, of electric vehicles, recently announced a plan to expand its operations into Greece.

During their meeting, Hatzidakis and Pyatt also discussed the partnership between Greece, Cyprus and Israel, plus the U.S.

The progress of work at the Greek-Bulgarian IGB gas pipeline, whose geostrategic importance was stressed by the Greek minister, was also addressed. A closer association with Bulgarian contractors is being sought for the project’s punctual delivery.

Work on the Alexandroupoli FSRU in northeastern Greece is progressing at a satisfactory pace, the two officials agreed, noting the project will have a positive impact on geostrategic and energy matters.

The U.S. supplied nearly half of the 2,651,903 cubic meters of LNG imported into Greece in the first half of 2020, almost quadruple the amount supplied by America to Greece during the equivalent period a year earlier.

Turkey tensions will not be escalated, ‘aim achieved’

Turkey will not continue intensifying its provocations in the East Mediterranean as the neighboring country has already achieved its main goal, a State Department declaration noting that the country is performing hydrocarbon exploration activities in disputed territory, Dr Konstantinos Nikolaou, a seasoned petroleum geologist and energy economist, supports.

Turkey’s provocations over the past few days – the country sent a seismic survey vessel into Greek EEZ waters for further exploration work following such initiatives in the past – represent part of a carefully planned strategy whose aim is to end Turkey’s East Mediterranean isolation of recent years and put the country back in the frame of the region’s hydrocarbon developments, experts believe.

Turkey has refused to sign the UN’s International Law of the Sea treaty, strongly disagreeing with Article 121, giving EEZ and continental shelf rights to island areas.

Instead, the country has followed its own rules, adjusting them as it pleases, to avoid giving any rights to island areas.

Besides seeking to reinforce the country’s position that rejects any EEZ rights for islands, the latest Turkish moves also aim to cancel EEZ agreements signed by Cyprus with Egypt, Israel and Lebanon.

Turkey has unsuccessfully sought to sign an EEZ agreement with Egypt, during Muslim Brotherhood times.

Dr. Nikolaou predicts that there will be no Turkish movement south of Crete as the transfer of an area by Libya, Turkey’s regional partner, would be required. The area of Benghazi is not controlled by Fayez al-Sarraj, the head of Libya’s UN-recognized government, but by renegade commander Khalifa Haftar.

Ultimately, the Turkish strategy in the wider region is aiming for co-exploitation of hydrocarbon deposits that may be discovered.