Solon Kassinis Director - Energy Service

Transcription

1 New Energy Sources of Supply for Europe: The Prospects for Southeast Europe and Eastern Mediterranean Solon Kassinis Director - Energy Service 16 th Roundtable with the Government of Greece Transforming uncertainty into stability, wisdom and growth Athenaeum InterContinental Athens, Greece 02 July 2012 Ministry of Commerce, Industry & Tourism Republic of Cyprus

2 Cyprus: Geostrategic Facts Third largest island in the Mediterranean Sea Located at the crossroads of big international energy routes Full member state of the European Union Open services-oriented market economy A strategic hub for business activities in the region Greater Mediterranean region is a market with large potential for oil and gas trading

3 Regional Hydrocarbon System: Potential Undiscovered Oil & Gas Resources in the Eastern Mediterranean Assessment by USGS Levantine Basin Oil: 1.68 bbl Gas: 122 tcf Nile Delta Basin Oil: 1.76 bbl Gas: 223 tcf

4 East Med Hydrocarbon System: Israel Leviathan Natural Gas: 20 tcf Oil:? Tanin Natural Gas: 1.1 tcf Tamar Natural Gas: 9 tcf Production: 2013 Dalit Natural Gas: 0.5 tcf Production: 2013

5 East Med Hydrocarbon System: Egypt Gas Reserves (EGAS) Mean Annual Increase = 5.2%

6 Offshore Cyprus: Natural Gas Discovery Natural Gas Discovery 28 Dec tcf gross mean estimated resources 310 feet net natural gas pay (Miocene sand intervals) 40 sq. miles field area 5,860m total depth 1,688m water depth

7 Hydrocarbon System: Southeast Mediterranean

8 Offshore Cyprus: An Emerging Area A promising regional geological background A great number and variety of play concepts for Exploration associated to the different tectonic and stratigraphic domains Many attractive major plays have been identified An efficient regional seal: the Messinian evaporites Very thick sedimentary basins (12-15 km) Multiple possible clastics and carbonate reservoirs 14 plays and many leads of considerable size Big hydrocarbon discoveries in the region Geological Cross Section

9 Offshore Cyprus: 14 Recognized Hydrocarbon Plays

10 2 nd Licensing Round Available Blocks: 1-11 & 13 2 nd Licensing Round: 11 Feb. 11 May 2012 Number of Applicants: 15 Companies/Consortia Number of Applications Submitted: 33 Countries of Origin: United Kingdom, France, USA, Israel, Netherlands, South Korea, Russia, Malaysia, Italy, Australia, Norway, Canada, Indonesia, Cyprus Evaluation of the applications is carried out by a Committee The terms and conditions of the Contract shall be negotiated with the selected applicant The competent authority for the granting of licenses is the Council of Ministers

11 Development in Block 12 (Subject to Approval)

12 Natural Gas Demand in Europe Natural Gas Demand in EU27 Share of Natural Gas in EU27 Primary Energy Consumption Natural Gas Production within EU declines The share of Natural Gas in EU s primary energy consumption will remain high Additional Supplies need to be defined Source: Eurogas

13 Natural Gas Supply in Europe - Alternatives Source: Enel

14 Natural Gas Projects (Subject to Political Decisions) Domestic Market Gas Supply via Pipeline EU and International Market Liquefaction Plant Gas export pipeline

15 Liquefaction Plant Commercial Perspectives (Subject to Political Decisions) Year online Capacity (mtpa) Train 1 Train 2 Train Future Far Future Future Upstream Producers Future Upstream Producers Asia 65% Asia 60% Asia 50% Europe 35% Europe 40% Europe 50% Independent LNG Plant Company A (shareholders may be same as owners) Independent LNG Plant Company B (shareholders may be same as owners) Independent LNG Plant Company C (shareholders may be same as owners) 400 Noble Energy 500 Gas Suppliers LNG buyers (contracted destination) metres 10 Operator es etr n 0m atio ca v Ex Buildings Refrig. Storage Utilities Inlet Gas Governed by a Joint Use and Operating Agreement Total Cost (USD) LNG Train (APCI) LNG Train (APCI) LNG Train (APCI) Price Marker Commercial Structure LNG Storage 2nd Licensing Round (potential) Licensees 10 billion 8 billion 6 billion Japan Crude Cocktail (JCC) Japan Crude Cocktail (JCC) Japan Crude Cocktail (JCC) Fuel Oil Fuel Oil Fuel Oil Tolling Tolling Tolling HP Flare LP Flare

16 Gas Export Pipeline (Subject to Political Decisions) Gas Export Pipeline Gas Transmission

17 Integrated Gas Project in Cyprus A Future Perception Gas Export Pipeline Gas from other upstream fields

18 Thank you for your attention!