Charalambos (Charles) Ellinas, the contracts signed on Monday at the Presidential Palace by the Italian company Eni for undersea infrastructure for the “Kronos,” noting, however, that “the benefits for Cyprus are very low.”
“It is certainly a historic event” in the sense that we will move forward with natural gas exports, Mr. Ellinas told CNA when asked to comment on the contracts—totaling $1.8 billion—signed Monday at the Presidential Palace by the Italian company Eni for the “Kronos” natural gas field “Kronos.”
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He noted, however, that “that’s where the benefits end” and added that “if we ask what the benefit is for the Cypriot side, unfortunately the benefits for Cyprus are very low.”
He added that far too many concessions were made to Eni, particularly regarding the tariffs for using the infrastructure of the Egyptian “Zor” gas field.
“Cyprus’s interest ends at the entrance to the terminal in Damietta,” in Egypt, he added.
Mr. Ellinas said that “Cyprus derives no benefit from the liquefaction and sale of liquefied natural gas (LNG),” adding that this is where the big profits lie.
“The added benefit comes from the sale of LNG,” he noted, adding that “Cyprus does not participate” in this, but “stops before it enters the terminal” in Egypt.
Regarding discussions about a geostrategic project for Cyprus, Mr. Ellinas said that Cyprus does not participate in the sale of LNG, which “goes wherever Eni decides.”
Furthermore, he noted that the field’s reserves are small, with “exports perhaps amounting to 4 billion cubic meters per year,” adding that this volume represents just over 1% of Europe’s total. “Europe consumes around 340 billion cubic meters every year,” he concluded.
READ ALSO: “The companies bear all the risk”: When are revenues from “Kronos” expected, and when will extraction begin? | AlphaNews
Source: CNA
