Geoffrey Pyatt, Assistant Secretary of State for Energy Resources of the US, speaking at COP29, described the electrical interconnection with Greece and Israel as a great opportunity for Cyprus, reiterating US support for the promotion of energy interconnection projects in the Eastern Mediterranean.

Speaking about the Vertical Gas Corridor that will allow for the two-way flow of gas from South to North, and more specifically from Greece to Bulgaria, Romania, Hungary, Slovakia, Moldova and Ukraine, Mr. Pyatt recalled the US support so far for the Alexandroupolis FSRU, which is a key element of the project, launched in the first Trump presidency and already has an investment from the US company Venture Global for 25% of its capacity for the next five years.

"The implementation of this project is a priority for both the US and the European Union," he noted, adding that "I have seen in my global portfolio regional energy infrastructure projects that are very expensive and complex. The Vertical Corridor is not one of them. Because we already have all the work: the FSRU of Alexandroupolis is operational, the IGB Interconnector is operational, and the Southern Gas Corridor, offering interconnection to Baku, is operational. All our projects have been successful because of the great political support from the US side as well."

He, however, stressed that what was needed to make the Vertical Corridor viable was the understanding of the stakeholders on the commercial part of the project and expressed optimism that the project would go ahead successfully. 

GREAT SEA INTERCONNECTOR

Speaking about the electrical interconnection project with Cyprus, he underlined its great political importance for Cyprus, as it will lead to the solution of a number of problems, such as the fact that it is the only country in the EU that is not interconnected with the Union. At the same time, it will benefit from Greece's progress in creating green energy infrastructure and will be connected to the ENSTO-E grid, which will also lead to lower prices.

"I think this has been lost, to a certain extent, in the debate within Cyprus because of the CAPEX costs that have to be paid initially. But in the long term, it is a fantastic opportunity for the Republic of Cyprus, even just as a project that connects Cyprus with Greece and the rest of the EU. In the long term, we are very supportive also of the vision of interconnecting Cyprus with Israel and with energy interconnections in the wider region," he noted.

FIRST QUARTER COST-BENEFIT STUDY

Speaking at the Cyprus Energy Symposium, the President and CEO of ADMIE, Manos Manousakis, noted that subsea surveys are underway, adding that in the first quarter of 2025 the cost-benefit study for the interconnection between Cyprus and Israel will be ready. In addition to the US, Israel, and the European Union, which is providing €658 million in funding for this project, he added.

STRENGTHENING OF Relationships

Relations between Greece and Cyprus will become even closer "as the construction of the cable that will connect our two electricity systems progresses," Greek Environment and Energy Minister Theo Skylakakis said, adding that the completion of the project will lead to much lower prices in the coming years.