Cyprus Natural Gas to Supply Europe via Egypt by First Half of 2028

Cyprus is poised to become a significant alternative energy supplier for Europe, with natural gas from its offshore Cronos field slated to reach European consumers by the first half of 2028. Energy Minister Michael Damianos highlighted the East Mediterranean's growing importance as a new energy hub, driven by Europe's need to diversify its sources in light of Russia's war in Ukraine and Middle Eastern instability.

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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.

Partners TotalEnergies and Eni have committed to developing the Cronos field, marking the first time gas from the East Mediterranean will be supplied to European markets. The project involves constructing a pipeline to connect Cronos to Egypt's Zohr natural gas deposit, a 105-kilometer undersea link expected to begin construction later this year. The gas will then be processed at Egypt's Damietta facility before being liquefied and shipped to Europe.

This approach, costing an estimated $2 billion, is considered the most economically viable option due to its proximity to existing Egyptian infrastructure, costing roughly half of alternative developments within Cypriot waters. While the entire output of Cronos, over 3 trillion cubic feet, is designated for Europe, a portion may be allocated to Egypt's domestic needs. Damianos emphasized that the project's significance for Cyprus lies not in substantial revenue but in establishing the nation as a gas producer.

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It’s a small reserve. Our income as a country is not going to be huge, so its importance is not the money, its importance (is) the commencement of being a producer and having first gas.

Cyprus has other substantial gas reserves, including Glaucus and Pegasus with an estimated 6.9 tcf, which ExxonMobil and QatarEnergy plan to develop by 2033. Another field, Aphrodite, holding an estimated 5.6 tcf, is expected to see a final development decision by a Chevron-led venture in summer 2027. These developments underscore Cyprus's strategic role in bolstering Europe's energy diversification efforts.

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What we can say (is) that Exxon is the type of company that sticks by the timelines and sometimes delivers even earlier.