Cyprus seeks energy giants for new natural gas exploration

The Republic of Cyprus is negotiating with international energy companies to grant exploration and drilling rights for unallocated natural gas parcels within its Exclusive Economic Zone. President Nikos Christodulides stated that the initiative aims to transform the Eastern Mediterranean into an alternative energy corridor for Europe, helping the continent reduce its dependence on Russian gas following the invasion of Ukraine.

A key component of this strategy involves utilizing existing infrastructure in Egypt and Israel. For instance, gas from the Cronos field in parcel 6 is expected to be transported to Egypt, processed at the Zohr field facilities, and exported to international markets via the Damietta LNG terminal. This model allows Cyprus to leverage Egypt’s established infrastructure rather than building costly new LNG facilities locally. The goal for the first gas exports is set for 2028.

While existing rights for several parcels are held by companies such as Eni, TotalEnergies, Chevron, NewMed Energy, and MOL, the government is actively seeking new partners for additional blocks. Meanwhile, efforts to complete the Vasiliko LNG terminal project continue despite previous delays and the termination of contracts by the CPP-Metron Consortium in July 2024.