European consumers can anticipate receiving natural gas from an undersea deposit off Cyprus as soon as March 2028. This announcement was made by Michael Damianos, the energy minister of Cyprus. He emphasized the growing significance of the East Mediterranean as an alternative energy source for Europe due to the ongoing war in Ukraine and instability in the Middle East.
TotalEnergies from France and Italy’s Eni have decided to proceed with the development of the Cronos natural gas field off Cyprus’ southern coast. This project marks the first instance of East Mediterranean gas being supplied to European markets. Damianos, in an exclusive interview, highlighted the strategic importance of Cyprus as an alternative gas source in the current geopolitical climate.
The Eni-TotalEnergies consortium plans to initiate work on a pipeline connecting Cronos to Egypt’s Zohr natural gas deposit. This infrastructure, located 105 kilometers away, will take up to 18 months to complete. Once operational, the gas will be transported to the Damietta processing facility in Egypt, where it will be liquefied for shipping to Europe.
Piping gas to Egypt is the most economically viable option, costing around $2 billion, significantly less than other development options in Cypriot waters due to existing infrastructure.
The agreement ensures that while the majority of the more than 3 trillion cubic feet of gas from Cronos will supply Europe, a clause permits a fifth of this quantity to assist Egypt’s domestic energy needs. Damianos described the reserve as small, with limited national income expected. Its primary importance lies in Cyprus’ emergence as a gas producer.
Within Cyprus’ Exclusive Economic Zone, six natural gas deposits have been discovered. Glaucus and Pegasus, with a combined estimate of 6.9 trillion cubic feet, are scheduled to begin gas production by 2033 through a partnership with ExxonMobil and QatarEnergy.
ExxonMobil intends to expand exploration in Cyprus, suggesting a robust commitment to timelines, often delivering earlier than expected. They are also likely to receive an additional license for further hydrocarbon searches.
Aphrodite, the first gas field discovered off Cyprus, holds about 5.6 trillion cubic feet of gas. A Chevron-led joint venture is expected to finalize development plans by summer 2027. A dedicated pipeline will link the Aphrodite field to Egyptian energy facilities. An arbitrator is set to determine the portion of the field lying in Israeli waters and Israel’s corresponding share soon.
Additionally, French investment firm Meridiam is supporting the Great Seas Interconnector project, which aims to integrate Europe’s power grid with Cyprus and Israel. This ambitious project may end Cyprus and Israel’s energy isolation and lay the groundwork for the IMEC initiative, a new energy and trade route linking the Gulf and India.
The Interconnector project faces bureaucratic challenges related to exceeding the initial cost estimate of $2.2 billion. The forthcoming European Investment Bank report will clarify financial concerns, which is crucial for Cyprus as consumers may bear up to 63% of construction costs, potentially raising electricity prices.
Efforts are underway to attract private investment and secure EU funding to mitigate costs for Cypriot consumers. So far, the EU has committed $760 million to the project. Damianos remarked on the project’s importance, highlighting its potential to connect Cyprus to the European grid, with future plans to extend to Israel.