Cyprus resolute on natural gas plans despite geopolitical reactions

Minister of Energy, George Papanastasiou, affirmed Cyprus' commitment to proceed with its plans for transporting natural gas from the region, both for domestic electricity generation and for liquefied natural gas (LNG) exports, despite geopolitical reactions.

During a conference organized by the trade union SIDIKEK PEO on Cyprus' Electricity Authority, Papanastasiou emphasized the need for reduced electricity bills. He stated that this objective could be achieved by introducing natural gas through a pipeline from the region, as opposed to relying on LNG, whose prices have soared due to the conflict in Ukraine and resulting sanctions on Russia.

The new government has revised its policy to include the import of natural gas from Israeli gas fields and from gas reserves in the Cypriot Exclusive Economic Zone (EEZ). This gas will be utilized for both electricity generation and liquefaction, with the intention of exporting it to European and other markets. On May 29, Cyprus will host a workshop to discuss this proposal with energy companies operating in the Cypriot EEZ, as well as upstream and downstream sector companies.

Highlighting the approval of this plan by Cyprus President Nikos Christodoulides, Papanastasiou acknowledged that there would be geopolitical reactions. However, he emphasized the importance of Cyprus standing on its own feet. He stated, "We will import natural gas from our neighborhood, and perhaps our own, without losing it here and there. Cyprus will be prioritized above all others." If any surplus quantities remain, the matter of exporting them will be considered, but Cyprus will be given priority.

Papanastasiou also emphasized the significance of the Electricity Authority of Cyprus (EAC) in the energy market and pledged his support for increasing electricity production from renewable sources. He emphasized that the EAC should play a role in setting lower prices.

Exploration in the Cypriot EEZ has revealed significant gas reserves, including the Aphrodite gas field in block 12 with 4 trillion cubic feet (tcf), the Glaucus gas field in block 1 with an estimated 5 to 8 tcf, and two additional discoveries in block 6: Cronos 1 with a gross mean of 2.5 tcf and Zeus 1 with an estimated quantity between 2 and 3 tcf. Initial plans included the possibility of transporting Cypriot natural gas to LNG plants in Egypt for liquefaction.

Papanastasiou will travel to Israel in mid-June to discuss the proposal for natural gas transfers to Cyprus and will continue efforts to resolve the dispute regarding the extent of the Aphrodite reservoir and its connection to the adjacent Yishai gas field in the Israeli EEZ.