ExxonMobil Eyes 2033 for Cyprus Natural Gas Flow
The energy giant plans to pipe gas from two undersea deposits to Egypt for liquefaction and export, aiming to establish Cyprus as a new European energy hub.
Natural gas discovered by ExxonMobil in two undersea deposits off the coast of Cyprus could begin flowing by 2033, according to John Ardill, Vice President of Global Exploration for the company. This development aims to position the East Mediterranean island nation as a significant new energy source for Europe.
The most viable plan for bringing the gas to market involves transporting it via pipeline to existing processing facilities in Egypt, where it will be liquefied for export. Ardill stated that other potential options, such as constructing onshore facilities in Cyprus or deploying a floating processing unit, are currently considered too costly.
"Everything you’ve seen between the government of Cyprus and the government of Egypt gives us a lot of confidence that there’s good government to government coordination, the agreements in place to leverage that eastern Mediterranean energy hub concept,” Ardill said.
ExxonMobil and its partner QatarEnergy recently signed an agreement with Cyprus, declaring the two deposits, named Glaucus and Pegasus, commercially viable. These deposits are located within Block 10 of Cyprus' exclusive economic zone (EEZ) and are estimated to hold a combined total of approximately 7 trillion cubic feet of natural gas.
Ardill also indicated that the consortium is interested in expanding its exploration activities in the region, specifically in an adjacent block on the southwestern corner of the EEZ. Further drilling at the Pegasus deposit is scheduled for the end of this year to gather crucial data for its development.
Cyprus has been working to become an energy supplier since the initial discovery of natural gas off its southern coast in 2011. Several other consortia also hold exploration licenses in the Cypriot EEZ. These include a partnership of Italy’s Eni and French TOTAL, which holds licenses for four blocks containing an estimated 5.6 trillion cubic feet of gas, and a consortium involving Chevron, Shell, and NewMed, which has rights to a block containing the Aphrodite deposit, holding approximately 5.6 trillion cubic feet of gas. Earlier this year, Eni projected that its Cronos gas field could be supplying European markets by late 2027 or early 2028.