Subsea Technology Eastern Mediterranean is dedicated to bringing the technology and expertise needed to further develop and monetize the Eastern Mediterranean’s vast offshore natural gas reserves. Natural gas is the cleanest burning and fastest growing fossil fuel, now accounting for about 25% of global electricity generation and expected to follow an upward trajectory through 2050. A confluence of factors is driving this rise in demand, and new subsea technologies are improving the economics and carbon intensity of natural gas development.
Operators in the Eastern Mediterranean (EMED) are seeking to capitalize on this growing market by monetizing the region’s massive offshore natural gas reserves with technologies and best practices from leading developers.
Cyprus is in a premium position to benefit, with its extensive offshore reserves, access to markets, and steadfast government support. The economy in Cyprus has been dominated by tourism and the service sector. But a string of significant offshore natural gas discoveries in Cypriot waters since 2011 have the potential of boosting the long-term sustainability of the national economy and offer a path to achieve significant export revenues.
In the wider EMED region, the total discovered recoverable reserves are around 144 tcf, with significant upside exploration potential offshore Cyprus, Egypt, and Israel. The EMED basins could hold up to 494 tcf of undiscovered natural gas resources. To help illustrate the scale of this opportunity in the region, global demand for natural gas in 2021 was about 145 tcf.
A number of high-impact wells are planned in the basins within Cypriot, Israeli, and Lebanese waters within the next two years. Meanwhile, Egypt and Israel have been developing deepwater natural gas discoveries that are close to the Cypriot discoveries, but all the reserves are in national exclusive economic zones.
Among the possible links from the EMED to the market is the EastMed-Poseidon Pipeline. The project involves a 2,000 km onshore and offshore natural gas conduit from the Levantine Basin via Cyprus to Greece and Italy. The project is planned to be commercially operational by 2027.
Common development plans for deepwater natural gas development include subsea tieback to shore or to an offshore floating liquified natural gas vessel. New technologies are improving the economics and efficiency of offshore natural gas developments, and subsea will play a key role in all development scenarios. Moreover, the EMED does have a baseline of long-distance tiebacks, with three of the industry’s top six longest tiebacks. There is substantial engineering and operational expertise in the EMED, but there also is a desire to draw more technology and knowledge transfer to boost local content and fully exploit the region’s resource potential.
Cyprus and the EMED hold tremendous potential for long-term investment in the sustainable development of offshore resources. Cyprus is unique in that the market is there, and the country has long been an attractive destination for international investors and visitors.
Subsea Technology Eastern Mediterranean will bring together the national and international operators and global engineering firms, contractors, equipment suppliers, service companies, and regulators that are participating in, or desire to take part in sustainable offshore energy development in the EMED region. The time is now and the potential is significant.