natural gas public company (defa) defa 19.4.1… · 2.submarine gas pipelines in order to bring the...
TRANSCRIPT
NATURAL GAS PUBLIC COMPANY
(DEFA)
Cyprus Energy PolicyThe long term Strategic Plan of Cyprus is aligned with the European Union Directives and is based on the following:
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• Diversification of energy sources
• Maintaining national security stocks
SECURITY OF SUPPLY
• Decrease the Cost of Energy in general and Electricity in Particular (Presently one of the highest in EU)
• Decrease the Cost of Production
INCREASED EFFICIENCY
• Contribution by Renewable Energy Sources 13% by 2020.
• Reduction of CO2 emissions and improvement of power generation efficiency
ENVIRONMENTAL CONSIDERATIONS
The Cyprus Electricity Market
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Small and Isolated System
The Electricity Market in Cyprus has been operating on
the basis of a single provider for more than 50 years
Almost 100% of Electricity in Cyprus is still generated and
supplied by a single state company, the Electricity
Authority of Cyprus (EAC)
Cyprus Accession to the European Union introduced new
obligations and constraints concerning the Electricity
Market (Liberalization, Fuel, Emissions). As of 01.01.2014, 100% of the
market will be Liberalised (65% of the Market is now Open).
The Natural Gas Market
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According to EU Directives Cyprus qualifies and is classified as an Emergent
Market for Natural Gas and also as an Isolated Market (10+10 years)
Unlike the electricity sector, which has been liberalized, the gas sector,
according to the last amendment of the law Regulating the Natural Gas Market as
well as the relevant Council of Ministers Decisions, shall be fully monopolistic for
a period of 20 years
The Natural Gas Public Company (DEFA), which is controlled by the state, has
been appointed by Government as the Sole Importer and Distributor, of any
form of Natural Gas, in Cyprus
In view of recent Gas Discoveries by Noble Energy (USA) in Block No 12 in the
Cyprus Exclusive Economic Zone, DEFA is currently in discussions with the
Government to widen its role and activities
DEFA’s Role
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Import
Storage
Transmission
Distribution
Supply
Trading
NATURAL GAS
(DEFA)
Developing the Gas Network Infrastructure
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In July 2010, DEFA hired Consultants to provide Engineering Consultancy Services
for the Development of a Gas Pipeline Network.
Preparatory Work on Phase “A” of the pipeline project (to supply all Power Stations)
has since been running uninterrupted. Actual construction work is estimated to
begin in 2012.
The Feasibility Study, Environmental Impact Assessment Study, Risk Assessment
Study and Economic and Financial Analysis Study, were completed. The Final
Route for the “back-bone” Pipeline Network has already been decided.
Towards the construction of the aforementioned Pipeline Network, ( approximately
80km in length, estimated cost €60M) DEFA has managed to secure €10M of E.U.
funding under the European Energy Programe for Recovery (EEPR).
Investment Opportunities in the Cyprus Energy Sector
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As a result of ongoing developments, the following investment sectors can be
identified:
1. Exploration (2nd Licensing Round, announced in EU Journal C38
dated 11th February 2012)
2. Submarine Pipeline(s)
3. Liquefaction Plant(s)
4. Cyprus Internal Natural Gas Distribution Network
5. Electricity Power Generation
6. Use of Natural Gas in Transport (buses, cars, etc.)
1.Exploration
Block No 12 was awarded to Noble Energy during the 1st Licensing Round. Another 12 Blocks are the subject of a Second Licensing Round which was announced on 11th February 2012 in the Official EU Journal, offering big investment possibilities.
A lot of interest has already been shown by many big companies around the world.
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2.Submarine Gas Pipelines In order to bring the Natural Gas to Cyprus, from the
Gas Fields, a 180-200km submarine gas pipeline will be necessary. Estimated cost up to US$3Billion.
There is an opportunity for the Production, Laying, Operation and Maintenance of this pipeline, which is bound to have “third party access”.
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3.Liquefaction Plant(s) The setting up of 1-3 Liquefaction trains 5MT/y each,
(in modular form), in Cyprus, in order to liquefy gas reserves and export them to Europe, Japan, etc as LNG (Liquefied Natural Gas), is a necessity.
The estimated cost of establishment of such an LNG plant is in the region of US$10Billion.
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4.Cyprus Internal Natural Gas
Distribution Network
The Government of Cyprus has created the Natural Gas Public Company of Cyprus (DEFA) which will be the sole importer and distributor of Natural Gas in Cyprus.
DEFA is currently designing the inland gas distribution network and very soon it will announce tenders for this Project. The gasification of the Island will be an on-going process and it is expected to cost over €500 million.
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5.Electricity Power Generation The Electricity Market of Cyprus has been liberalized
(following EU Directives) so it is open and free to competition.
The Electrical Power Generation needs of Cyprus are very high and are ever increasing, while the Sector is still a monopoly!
It is anticipated that the first Independent Power Producers will soon appear.
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6.Use of Natural Gas in Transport The use of Natural Gas in Transport i.e. Buses, suitably
converted Vehicles and Gas Stations opens up a big new opportunity which needs to be addressed. This subject is one of the priorities that DEFA itself has set.
Executive Chairman
Costas Ioannou
Email : [email protected]
Tel: 00 357 22 761761
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