Cyprus, Greece and the European Commission have agreed to update economic and technical studies for the Great Sea Interconnector (GSI) project.
“We have concluded that the cross-border project needs to undergo an update, at least in its financial aspect. The most important parameter of this study is to attract strong investors who will have the capacity to implement the project, so that the challenges surrounding the financial and possibly technical aspects are sustainable,” stated George Papanastasiou, Minister of Energy, Commerce, and Industry, regarding the Greece-Cyprus-Israel Great Sea Interconnector (GSI). His remarks came after a trilateral meeting with his Greek counterpart, Minister of Environment and Energy Stavros Papastavrou, and the European Commissioner for Energy and Housing, Dan Jørgensen, at the European Commission headquarters in Brussels. The meeting was also attended by Greece’s Deputy Minister of Energy, Nikos Tsafos, as well as Cyprus’ Permanent Representative to the EU, Christina Rafti.
The project, which is included in the European Commission’s list of Projects of Common Interest and has received pound 657 million in EU funding, saw all three parties agree to update the economic and technical studies for the GSI. The GSI is also part of the “Energy Highways” initiative, aiming to boost interest in the project from potential investors.
During the discussion with the European Commissioner for Energy, the Energy Ministers of Cyprus and Greece also emphasized the need to eliminate natural gas flows from Russia to the EU as part of the transition to a safer and more sustainable energy system. Additionally, Papanastasiou reiterated Cyprus’ readiness to actively contribute to Europe’s energy priorities ahead of the upcoming Cypriot Presidency of the EU Council, focusing on cross-border interconnections and the Union’s supply security. He also highlighted the potential to utilize natural gas deposits in Cyprus’ Exclusive Economic Zone (EEZ) to enhance the EU’s energy security, including through the Alexandroupolis terminal, as part of the EU’s vertical energy corridor.
The meeting took place following the 3rd Cyprus-Greece Intergovernmental Summit in Athens, where it was decided by the President of the Cypriot Republic, Nikos Christodoulides, and the Prime Minister of Greece, Kyriakos Mitsotakis, to update the economic and technical parameters of the GSI project.
Papanastasiou said that “we have concluded that the cross-border project needs to undergo an update, at least in its financial aspect. The most important parameter of this study is to attract strong investors who will have the capacity to implement the project, so that the challenges surrounding the financial and possibly technical aspects are sustainable. In view of this, we are moving towards the direction of this specific study, so as to incorporate the techno-economic aspect into the new environment, which aims to find strong players and funds that can financially support the project,” the Minister stressed.
“Beyond this, I would like to refer to the upcoming Cypriot Presidency of the EU. One of our priorities will be cross-border projects and energy networks, as well as the protection of energy infrastructure and ongoing projects, such as the GSI,” he added, thanking the Greek Minister and Deputy Minister “for their efforts and direction in implementing a very important project, which will end the energy isolation of the Republic of Cyprus, the last EU member state not connected to the European grid.”
“The 3+1 dimension is particularly important, as the zero supply of Russian natural gas now provides solutions through the vertical corridor, which starts from Alexandroupolis and reaches Ukraine via other countries,” Papanastasiou added.
“The Republic of Cyprus can contribute through the deposits that are under development; soon, there will also be the first natural gas on the surface, which will be liquefied via Egypt. Thus, the entry point towards the Vertical Corridor can also be Cypriot natural gas,” he added.
On his part, the Greek Minister of Environment and Energy, Stavros Papastavrou, said that they informed the European Commissioner for Energy and Housing, “about the significant agreements decided last week in Athens with the American Ministers, agreements that lead to Europe’s independence from Russian natural gas and the shift towards American gas, with Greece as the main entry point.”
“We also discussed the outcomes of the 3+1 initiative we had with the Cypriot Minister, along with the Energy Ministers of the United States and Israel. We emphasized the need to update the financial and technical details of the Cyprus-Greece electrical interconnection, as announced a few hours ago by the Greek Prime Minister and the Cypriot President, in view of potential investor interest. Finally, we stressed the need for Europe to move quickly and strengthen interconnection projects to further reduce energy prices for households and businesses,” Papastavrou noted.
During his visit to Brussels, Papanastasiou also met with the Commissioner for Democracy, Justice, Rule of Law, and Consumers’ Rights, Michael McGrath. According an EU Commission readout requested by CNA, they discussed the upcoming Consumer Agenda, the 28th regime (a new legal framework for innovative businesses), and the first omnibus package, in view of the upcoming Cypriot Presidency.