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Cyprus is aiming to begin producing natural gas from offshore reserves between late 2027 and early 2028, according to Energy Minister Michalis Damianos. He made the remarks on Tuesday ahead of an informal meeting of EU energy ministers in Nicosia, held as part of Cyprus’s presidency of the Council of the European Union.
Speaking about a newly signed framework agreement with Egypt for the development of gas fields within Cyprus’s exclusive economic zone (EEZ), Damianos described the deal as a significant step forward. The agreement, concluded in Cairo a day earlier, underlines Cyprus’s intention to advance its energy plans and strengthen cooperation with international partners, including Egypt and the European Union.
Under the current strategy, gas from the Aphrodite field is expected to be transported to Egypt, where it will be liquefied before being sold on the domestic Egyptian market. Meanwhile, output from the Kronos field is planned for export to Europe via Egyptian infrastructure.
Damianos emphasized that the agreement reflects a broader strategic partnership between Cyprus and Egypt, covering multiple offshore deposits. He also outlined the anticipated timeline for Aphrodite, noting that preliminary engineering and design work is scheduled to begin around January 2027. A final investment decision is also expected within that year, with production likely to follow two to three years later.
Regarding the Kronos development, the minister said discussions with energy companies TotalEnergies and Eni are ongoing, with efforts focused on resolving key contractual matters. Recent meetings involving senior government officials and company representatives have sought to maintain progress on the project.
Damianos reiterated that the overall timeline for first gas remains unchanged, with initial production from Cyprus’s EEZ still targeted for the end of 2027 or the first half of 2028.
He added that talks are continuing with ExxonMobil and QatarEnergy regarding the future development of other licensed fields, though no agreement has yet been reached with Egypt for those resources.
On the Ishai field, the minister said negotiations are nearing completion, although regional tensions, particularly in Israel, have slowed communication. He noted that while an agreement on Ishai would be beneficial, it is not a prerequisite for Chevron to proceed with developing the Aphrodite field.
Overall, Damianos expressed confidence that outstanding issues related to Ishai will be resolved soon, with most legal and regulatory matters already settled.
