European consumers can anticipate receiving natural gas from an undersea deposit near Cyprus by March 2028. Michael Damianos, the Energy Minister of Cyprus, emphasized that the East Mediterranean is fast becoming an alternative energy source for European nations amid geopolitical challenges such as Russia’s war in Ukraine and tensions in the Middle East.
The decision to proceed with the Cronos natural gas field off Cyprus’ southern coast was made by TotalEnergies from France and Italy’s Eni. This marks the first instance of gas from east Mediterranean deposits being supplied to Europe. Damianos stated the significance of this development given Europe’s current geopolitical energy concerns.
According to the Eni-TotalEnergies consortium’s schedule, construction of a pipeline from Cronos to existing infrastructure at Egypt’s Zohr natural gas field will begin later this year. This construction will take up to 18 months. The pipeline’s completion will allow gas to be transported to the Damietta processing facility on Egypt’s northern shore for liquefaction and shipment to Europe.
Transporting Cronos gas to Egypt for processing is economically viable, costing around $2 billion or half of the estimated expense of developing other Cypriot gas fields. Although the agreement stipulates that all of Cronos’ over 3 trillion cubic feet of gas will go to Europe, a clause allows for nearly one-fifth to meet Egypt’s domestic energy needs.
Cronos is one of six discovered natural gas deposits within Cyprus’ Exclusive Economic Zone. Two of those, Glaucus and Pegasus, hold an estimated 6.9 trillion cubic feet of gas. ExxonMobil and QatarEnergy plan to commence gas production from these fields by 2033.
Damianos noted that ExxonMobil not only adheres to timelines but often delivers ahead of schedule. The company intends to broaden its exploration activities near Cyprus and is poised to receive an additional license for hydrocarbon exploration.
Another pivotal gas field, Aphrodite, holds an estimated 5.6 trillion cubic feet. A Chevron-led joint venture is expected to make a final development decision by the summer of 2027. A pipeline will directly connect this deposit to Egyptian facilities for domestic energy supply, as agreed with Chevron. A portion of the Aphrodite field lies in Israeli waters, and resolution of Israel’s share is expected soon.
Damianos highlighted French investment company Meridiam’s participation in the Great Seas Interconnector project. This electricity cable aims to connect Europe’s power grid with Cyprus and eventually Israel, mitigating their energy isolation. The cable also plays a part in the IMEC initiative, an EU effort to establish a new energy and trade route to the Gulf and India.
“It’s a very important project for Europe because it connects Cyprus which is isolated to the European grid. And the idea is to then proceed and connect to Israel,” said Damianos.
The project’s true cost remains under scrutiny, with the European Investment Bank report anticipated to provide clarity. Cyprus currently faces the possibility of shouldering up to 63% of the cable’s construction cost, potentially impacting electricity prices. However, efforts are underway to secure private investment and EU funding to alleviate this financial strain. The EU has already contributed $760 million to the project.