1. Fuelling the future of Cyprus with LNG
Dr. Stelios Bikos
Head of Commercial Division
DEPA – Public Gas Corporation of Greece S.A.
LNG: The meeting point for Marine Transport & Energy sectors in Cyprus Carob Mill Restaurants—Richard Ballroom, Limassol Cyprus September 29, 2017

2. Procurement & logistics of LNG
Cyprus and Greece
comparable in annual
domestic LNG need
Combined
procurements to benefit their buying power
Procurement and logistics of LNG
- Until CY-owned gas surfaces, the two countries are likely to be comparable in annual needs of LNG for their domestic needs
- If procurement of both countries could be combined, their buying power would benefit greatly
Foreseen CY FSRU will be holding some m3 LNG, necessitating MedMax size refill cargoes, namely
Either part-cargoes aboard conventional-size vessels; or
Twin unloadings of conventional-size cargoes in the space of several days; or
Reload cargoes from a nearby LNG regas terminal
The latter can easily be Revithoussa

3. Procurement & logistics of LNG
Part-cargoes aboard conventional-size vessels
Twin unloadings of conventional-size cargoes
Reload cargoes from a nearby LNG regas terminal 1 2 3
Foreseen Cyprus FSRU
( m3)
requires MedMax
size refill cargoes
Foreseen CY FSRU will be holding some m3 LNG, necessitating MedMax size refill cargoes, namely
Either part-cargoes aboard conventional-size vessels; or
Twin unloadings of conventional-size cargoes in the space of several days; or
Reload cargoes from a nearby LNG regas terminal
The latter can easily be Revithoussa

4. Security of Supply through LNG
Cyprus can supply Greece
Expansion of Revithoussa storage from 130 m3 to 225 m3 LNG as of 2018
Instances of really prompt need in GR for bridging quantities of LNG until arrival of a scheduled cargo
Such quantities may well be provided by CY, if in temporary slack demand or with safe stock
Security of Supply through LNG
Despite expansion of Revithoussa storage from 130 m3 to 225 m3 LNG as of 2018, there may still be instances of really prompt need in GR for bridging quantities of LNG until a scheduled cargo arrives
-Such quantities may well be provided by CY, if in temporary slack demand or with safe stock
Similarly, CY may fall in need of prompt bridging LNG until its next cargo
-Such LNG may be provided at very short notice from Revithoussa, assuming stock and availability of a small vessel
In the interests of security of supply, a small LNG carrier ( m3 LNG) could be purchased/chartered jointly by the two countries

5. Security of Supply through LNG
Greece can supply Cyprus
CY may fall in need of prompt bridging LNG until its next cargo
Bad weather spell, Cargo delays, etc.
Such LNG may be provided at very short notice from Revithoussa, assuming stock and availability of a small vessel
Security of Supply through LNG
Despite expansion of Revithoussa storage from 130 m3 to 225 m3 LNG as of 2018, there may still be instances of really prompt need in GR for bridging quantities of LNG until a scheduled cargo arrives
-Such quantities may well be provided by CY, if in temporary slack demand or with safe stock
Similarly, CY may fall in need of prompt bridging LNG until its next cargo
-Such LNG may be provided at very short notice from Revithoussa, assuming stock and availability of a small vessel
In the interests of security of supply, a small LNG carrier ( m3 LNG) could be purchased/chartered jointly by the two countries

6. Security of Supply through LNG
Cyprus can supply Greece
In the interests of security of supply, a small LNG carrier ( m3 LNG) could be purchased/chartered jointly by the two countries
In the interests of security of supply, a small LNG carrier ( m3 LNG) could be purchased/chartered jointly by the two countries

7. Current Inland Gas Market in Cyprus01 02 03 04
CY gas market will –at least initially- be in isolation from other gas markets
Gas consumption will be dominated by power production
Gas will face competition from renewable sources but also synergies
The market size will pose challenges where it comes to EU acquis, which will have to be implemented
SECOND MESSAGE: CY inland gas market may benefit from GR experience, +ve and –ve
There are similarities that help exploit GR experience:
CY gas market will –at least initially- be in isolation from other gas markets
Gas consumption will be dominated by power production
Gas will face competition from renewable sources but also synergies
The market size will pose challenges where it comes to EU acquis, which will have to be implemented

8. Challenges
Development of the CY internal market may leap-frog development of the GR market
Suffering from no gas heritage, the CY gas market may start from an advanced form and structure,
where GR may offer its insight
Mature market structures may not be directly applicable to CY but may offer a broad framework for it; GR is right now exploring similar structures
Suffering from no gas heritage, the CY gas market may start from an advanced form & structure, where GR may offer its insight
Mature market
structures may not be
directly applicable to CY but may offer a broad framework for it; GR is right now exploring similar structures
Development of the CY internal market may leap-frog development of the GR market
Suffering from no gas heritage, the CY gas market may start from an advanced form and structure, where GR may offer its insight
Mature market structures may not be directly applicable to CY but may offer a broad framework for it; GR is right now exploring similar structures

9. Cyprus could develop into an Eastern Mediterranean LNG Trading Hub
Conclusion
Cyprus could develop into an Eastern Mediterranean LNG Trading Hub
Greece could help work up such a plan, as part of a distributed LNG Hub on the back of the common marine LNG efforts under Poseidon Med II.
Given its position, CY could develop into (part of) an Eastern Mediterranean LNG Trading Hub, on the back of a similar move by Singapore for the Pacific Basin
GR could help work up such a plan, as part of a distributed LNG Hub on the back of the common marine LNG efforts under PMII.

10. Head of Commercial Division, DEPA S.A.
Dr. Stelios Bikos
Head of Commercial Division, DEPA S.A.