Cyprus cannot secure a meaningful reduction in electricity prices while it remains without natural gas, energy analyst Charalambos Ellinas has warned, arguing that the country has no immediate alternative to its dependence on expensive conventional fuels.
Speaking on Politis radio’s Morning Review programme with Katerina Iliadi, Ellinas said he was not convinced that the Vasiliko terminal could be completed soon, despite government references to new tenders by the end of the year. Even if procedures move ahead, he said, completion could still take “two, three or four years”.
For that period, he added, Cyprus has no practical route to a substantial cut in electricity costs.
“Unfortunately, there is no other way to reduce the price of electricity. We depend entirely on fuel oil and diesel,” Ellinas said, linking high power bills directly to the absence of natural gas in electricity generation.
He also referred to the floating unit Prometheus, saying it remains inactive while maintenance costs continue to run. Cyprus, he argued, could have examined other options for importing natural gas, including the use of existing infrastructure in the Vasiliko area or bringing in another floating unit. Instead, he said, decisions have become tied to the current project.
On Cyprus’ own natural gas reserves, Ellinas said exports through Egypt are effectively the only available route at present, as the two Egyptian terminals are the only export infrastructure in the region. However, he voiced serious doubts over the financial benefit Cyprus would secure from such a plan.
He warned that the country could end up settling for the political achievement of appearing on the energy map, without ensuring meaningful revenues.
“What is the point of moving ahead only for political benefit, and not for economic benefit? What will Cypriots see after all these years of talking about natural gas?” he asked.
Ellinas said the priority should be to negotiate stronger financial terms, rather than rush decisions for the sake of political impressions. He added that, since major companies such as ExxonMobil are examining future liquefied natural gas export options, Cyprus should also assess whether its own fields could be included in broader plans that would deliver greater value.
Referring to the Aphrodite gas field, he said its development path leads towards Egypt and the Egyptian market. According to Ellinas, the companies involved view Cyprus’ domestic demand as too small, while the required infrastructure would be costly, making supply to the local market commercially difficult.
