Natural gas from an undersea field off Cyprus could begin flowing to Europe as early as March 2028, according to Cyprus Minister for Energy Michalis Damianos. This development marks a crucial step towards national energy independence for the island nation, as Europe seeks new supplies amidst geopolitical instability.
Minister Damianos stated in an exclusive interview that the gas now being developed would help make Europe more energy independent and stabilise prices. This pragmatic approach to energy security comes as Russia’s war in Ukraine and turmoil in the Middle East force the continent to seek alternatives to unreliable foreign sources. French company TotalEnergies and Italy’s Eni took the final investment decision last month to move ahead with developing the Cronos gas field off Cyprus’s southern coast. This project will mark the first time that gas from Eastern Mediterranean fields feeds European markets.
Securing National Energy
Damianos highlighted the importance of Cyprus becoming an alternative source of natural gas, especially given the current global situation. Work to build a pipeline from Cronos to existing infrastructure at Egypt’s giant Zohr gas field, located 105 kilometres away, will start later this year and is expected to last up to 18 months. Once completed, the gas will be transported to the processing plant at Damietta on Egypt’s northern coast, where it will be liquefied for shipment to Europe. Sending gas from Cronos to Egypt for processing was deemed the most economically viable option, estimated at a cost of around $2 billion (€1.73 billion), which is half the estimated cost of developing other gas fields in Cypriot waters due to its proximity to existing infrastructure.
While the agreement stipulates that all of the more than 3 trillion cubic feet (84.9 billion cubic metres) of gas from Cronos will go to Europe, it includes a clause allowing about one-fifth of that volume to be used to cover part of Egypt’s domestic energy needs. Damianos underscored the national significance, stating: “Our revenues as a country will not be huge, so its importance does not lie in the money, but in the fact that we are starting to become producers and to bring our first natural gas on stream.” This prioritises national capability over mere financial gain.
Cronos is one of six gas fields discovered so far within Cyprus’s Exclusive Economic Zone. Two other fields, Glafcos and Pegasus, hold combined estimated reserves of 6.9 trillion cubic feet (195 billion cubic metres). ExxonMobil and QatarEnergy, licensed to exploit these fields, expect gas from Glafcos and Pegasus to start flowing by 2033. ExxonMobil also plans to expand its exploration activities off Cyprus and is expected to obtain an additional licence to search for hydrocarbons. The Aphrodite field, discovered about 15 years ago, holds estimated reserves of 5.6 trillion cubic feet (158 billion cubic metres), with a final investment decision by the Chevron-led consortium expected in the summer of next year. A pipeline will link Aphrodite directly to facilities in Egypt to cover that country’s domestic energy needs, and an arbitrator is expected to decide Israel's share by next month, as part of Aphrodite lies in Israeli waters.
Brussels' Costly Vision
Beyond gas, the Great Seas Interconnector project, a power cable connecting Europe’s electricity grid with Cyprus and eventually Israel, has seen French investment company Meridiam enter as a financier. Damianos stated this project would end the energy isolation of Cyprus and Israel and serve as a key building block of the IMEC Initiative, a new energy and trade route to the Gulf and India that the European Union is pursuing. However, this EU-backed project has become mired in bureaucratic procedures, with its actual cost now exceeding the original estimate of $2.2 billion (€1.91 billion).
The Burden on Cypriot Citizens
A European Investment Bank report, expected in the coming months, will provide clarity on the project’s escalating price tag. Under the current agreement, Cypriot energy consumers would have to cover up to 63% of the cost of building the cable, which would mean a significant increase in electricity prices for the nation’s working and middle classes. While additional private investment is being sought to offset this burden, and further EU funding is being examined, the EU has already committed €658 million ($760 million) to the project. This highlights how Brussels’ grand initiatives often translate into direct financial strain on national citizens, even as they are presented as beneficial for "Europe."