Israel Gas Partners to Build LNG Plant in Cyprus

YERUSHALAYIM -

The main partners in the development of Israel’s natural gas fields, Delek Group and  Noble Energy, are now partnering in a project to build a liquefied natural gas (LNG) plant in Cyprus, Globes said on Wednesday.

The two companies signed a memorandum of understanding with the Cypriot government to build an LNG facility at Vasilikos on the island’s southern coast.

The companies hope to reach a final agreement by the end of 2013 to establish a joint special-purpose vehicle which will seek investors for the €7-8 billion LNG plant.

“On this basis, it is planned that the first LNG cargo would be delivered from the Vasilikos plant to international markets in late 2019, early 2020,” said an official statement.

“The signing of the memorandum between the Republic of Cyprus and the companies represents the next milestone on the road map for the exploitation of indigenous gas reserves in Cyprus’ exclusive economic zone,” said Cyprus Minister of Energy, Commerce, Industry and Toursim Yiorgos Lakkotrypis.

He added that the LNG plant would provide the necessary infrastructure enabling the export of Cypriot natural gas to the European and global markets.