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Cyprus is considering a new round of licensing for offshore gas exploration to capitalize on high demand, according to Energy Minister Giorgos Papanastasiou. With estimates suggesting that undiscovered gas reserves could be around 15-16 trillion cubic feet—close to half the United States' annual gas production—the interest from international energy companies has grown, especially with ongoing concerns over Russian gas supplies and the development of new liquefied natural gas (LNG) projects.
Currently, Cyprus has issued licenses for 10 of its 13 offshore blocks, involving major global players like Eni, Exxon Mobil, Chevron, and TotalEnergies. However, Papanastasiou indicated that a new licensing round could involve remaining unlicensed blocks or those where companies may choose to relinquish their licenses. "We are evaluating interest," he said, explaining that a new licensing round would be considered if there are indications that some blocks might soon be available.
The Cypriot government is keen to unlock its natural gas potential to support its economy and energy strategy. Despite the push for renewable energy, with a goal of reaching 33% renewable energy sources (RES) by 2030, the minister acknowledged that natural gas will remain a key energy source for decades. To support its renewable goals, Cyprus will soon open bids for solar energy storage projects that can expand its energy mix.
Papanastasiou also offered an update on existing gas projects, revealing that a field discovered in 2022 by Eni and TotalEnergies is expected to be operational by 2027. Another field, operated by Chevron, could start production between 2029 and 2030.
Source: Reuters
