Cyprus Aims to Become Key Natural Gas Supplier to Europe by 2028

Cyprus anticipates supplying natural gas to European consumers by March 2028, according to the island nation's energy minister, Michael Damianos. This development positions the East Mediterranean as a crucial alternative energy source for Europe amidst ongoing geopolitical instability.

Partners TotalEnergies of France and Italy's Eni have committed to developing the Cronos natural gas field, located off Cyprus’ southern coast. This project marks the first instance of gas from East Mediterranean deposits being channeled to European markets. Damianos emphasized the strategic importance of this endeavor, stating, "It’s important for Europe at this time because of the war in Ukraine, because of this situation in the Middle East, that Cyprus is going to be an alternative source of gas."

The development plan includes the construction of a pipeline connecting Cronos to Egypt's Zohr natural gas deposit, approximately 105 kilometers away. Work on this pipeline is slated to begin later this year and is expected to take up to 18 months to complete. Following this, the gas will be transported to the Damietta processing facility in Egypt for liquefaction and subsequent shipment to Europe. This approach is considered the most economically viable, with an estimated cost of $2 billion, roughly half the expense of alternative field developments within Cypriot waters due to its proximity to existing infrastructure.

While the agreement earmarks all of Cronos's reserves, exceeding 3 trillion cubic feet, for Europe, a provision allows for approximately one-fifth of this volume to meet Egypt's domestic energy demands. Damianos noted that while the reserve is not substantial enough to generate immense national income, its significance lies in establishing Cyprus as a gas producer with its first exports commencing.

Cyprus possesses several other significant natural gas discoveries within its Exclusive Economic Zone. The Glaucus and Pegasus fields, jointly estimated to hold 6.9 trillion cubic feet, are being developed by ExxonMobil and QatarEnergy, with anticipated production by 2033. Damianos expressed confidence in ExxonMobil's adherence to timelines.

Separately, a Chevron-led joint venture is expected to make a final decision by the summer of 2027 regarding the development of the Aphrodite field, which holds an estimated 5.6 trillion cubic feet. This field's gas is intended to supply Egypt's domestic market via a direct pipeline to Egyptian facilities.

In addition to natural gas initiatives, Cyprus is advancing the Great Seas Interconnector project, an electricity cable designed to link the power grids of Cyprus and Israel with Europe. This project, backed by French investment company Meridiam, aims to end the energy isolation of Cyprus and Israel and could serve as a component of the EU's proposed India-Middle East-Europe Economic Corridor (IMEC).