Cyprus approves first offshore gas project as power shortage looms

Eni and TotalEnergies have received regulatory approval for the Cronos offshore gas field, Cyprus' first commercial development of its offshore reserves. Production is scheduled to begin in 2028, with gas to be processed in Egypt and exported as LNG, a move that supports Europe's diversification of natural‑gas supplies.

At the same time, Cypriot officials warned that up to half of the island's conventional electricity generation capacity could be lost by 2030 as ageing units at Dhekelia and Vasiliko are withdrawn under EU environmental rules. The loss could create a shortfall of around 750 MW if new natural‑gas supplies and the planned electricity interconnector with Greece are not in place. Energy Minister Michael Damianos said, “We need natural gas to have sufficiency in 2030,” and noted the installation of a 120 MW storage facility expected to improve reliability from next January.