The recent encouraging natural gas discoveries made by US company Noble Energy Inc. in Block 12 offshore - some 7 trillion cubic feet according to initial estimates (the largest ever discovery in southern Europe) - has literally turned the prospect for LNG in Cyprus on its head - from being a possible importer to a likely exporter of the fuel. Furthermore, successful exploration work in adjacent Israeli territory offers the prospect of a joint development programme between both countries to produce and export LNG. Presently, Cyprus is in the process of a 2nd licencing round in respect of a dozen other blocks, which might well lead to further discoveries of natural gas in the Exclusive Economic Zone and justify construction of a two-train facility on the southern shore of the island.

These discoveries are attracting considerable interest from companies as far afield as China who may wish to participate in an LNG project in Cyprus. Of the many foreign delegates and experts visiting Nicosia and Limassol lately, some are suggesting a CNG - compressed natural gas - solution, possibly in addition to an LNG project.