European consumers will soon access natural gas from a significant undersea deposit off the coast of Cyprus. Energy Minister Michael Damianos announced that this supply could reach Europe by March 2028. The East Mediterranean region is becoming a key alternative energy source for Europe. Conflicts in Ukraine and the Middle East push Europe to seek new energy sources.
Partners TotalEnergies and Eni have agreed to develop the Cronos natural gas field off Cyprus’ southern coast. This project constitutes the first supply of gas from East Mediterranean deposits to European markets.
“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,” Damianos said.
Plans are in place to build a pipeline running from Cronos to the existing infrastructure in Egypt’s Zohr natural gas deposit. This construction will commence later this year and could take up to 18 months. Once completed, the gas will be transported to the Damietta facility on Egypt’s northern shore. Here, the gas will be liquefied and shipped to Europe.
Piping Cronos gas to Egypt for processing offers the most cost-effective solution, estimated at roughly $2 billion. This figure is about half of the projected cost to develop other gas fields within Cypriot waters. The proximity to current infrastructure minimizes expenses significantly.
Although the agreement sends all gas from Cronos to Europe, one-fifth of the gas might address some of Egypt’s energy needs. Damianos noted that while the financial gain for Cyprus is modest, the significance lies in becoming a gas producer.
Inside Cyprus’ Exclusive Economic Zone, Cronos is one of six natural gas deposits. Two others, Glaucus and Pegasus, hold an estimated 6.9 trillion cubic feet of gas. ExxonMobil, with partner QatarEnergy, aims to start gas production from these fields by 2033.
“What we can say is that Exxon is the type of company that sticks by the timelines and sometimes delivers even earlier,” Damianos stated.
Further expansion is expected as ExxonMobil plans more exploration activities off Cyprus. An additional license for hydrocarbon exploration is anticipated.
Aphrodite, another gas field, holds approximately 5.6 trillion cubic feet of gas. A Chevron-led joint venture is expected to make a final development decision by the summer of 2027. A pipeline will link Aphrodite directly to Egyptian facilities to supply domestic energy needs, as per an agreement with Chevron. As part of Aphrodite lies in Israeli waters, an arbitrator’s decision on Israel’s share is expected shortly.
Damianos also highlighted the Great Seas Interconnector project. A French investment company, Meridiam, is backing this electricity cable linking Europe’s and Cyprus’ power grids, with a future connection to Israel planned. This connection is crucial to ending Cyprus and Israel’s energy isolation.
Current challenges include red tape around the project’s costs, initially estimated at $2.2 billion. The European Investment Bank will soon provide clarity, affecting Cypriot energy consumers’ investment share.
The project is vital as it will connect Cyprus, presently isolated, to the European grid, with plans to extend the connection to Israel, enhancing the EU’s energy strategy.