NICOSIA, Cyprus (AP) Two significant agreements have been reached regarding the transportation of substantial natural gas reserves discovered within Cypriot waters, aimed at utilizing processing facilities in Egypt. This development has been termed a milestone for energy cooperation by Cyprus' President, Nikos Christodoulides, who emphasized that such collaboration is crucial in shaping the regional energy landscape.
President Christodoulides referred to the agreements as "game-changers," highlighting their importance as "pivotal for our strategic partnership." The first agreement involves a tripartite arrangement between Egypt, Cyprus, and a consortium comprised of major energy firms, Total from France and Italy's Eni. This deal outlines the establishment of pipeline infrastructure to transport natural gas from the Cronos deposit to Egyptian facilities, where it will be liquefied and processed for export to various international markets, including Europe.
The Eni-Total consortium, which has secured exploratory licenses for four out of the thirteen designated blocks within Cyprus' offshore economic zone, is expected to announce its plans regarding the extraction and transportation of the gas by summer 2023. Eni's Chief Executive Officer, Claudio Descalzi, emphasized the significance of this agreement, calling it a decisive step toward the establishment of an energy hub in the eastern Mediterranean region.
While officials have not disclosed the exact size of the Cronos deposit, preliminary assessments suggest that it may contain more natural gas than the Aphrodite deposit, which was the first gas field found in Cyprus' exclusive economic zone back in 2011. The Aphrodite field has been estimated to hold around 4.5 trillion cubic feet of gas.
The second agreement, which also involves Egypt, Cyprus, and a consortium that includes Chevron, NewMed Energy, and Shell, aims to create a framework for the development and monetization of the Aphrodite deposit. This agreement comes shortly after the Cypriot government and the Chevron-led consortium approved a revised development and production strategy for Aphrodite. This updated plan will incorporate a floating facility designed to process extracted natural gas, along with a pipeline connection to Egypt.
Cypriot Energy Minister George Papanastasiou mentioned in a statement last month that decisions about whether to utilize the gas from the Aphrodite field for domestic energy requirements in Egypt or to process it for export are still under consideration. Furthermore, President Christodoulides also engaged in discussions with his Egyptian counterpart, Abdel-Fattah el-Sissi, to outline future energy cooperation objectives and to discuss regional developments.
Additionally, during the energy exhibition EGYPES 2025 in Egypt, Christodoulides held meetings with ExxonMobil's Vice President for Global Exploration, John Ardill. ExxonMobil, alongside its partner Qatar Petroleum, holds exploration licenses for two blocks in Cyprus and is currently drilling a new well near the Glaucus deposit, which is estimated to contain between 5 to 8 trillion cubic feet of gas.
Energy Minister Papanastasiou has reported "positive" indications of substantial natural gas reserves at the Elektra well, another site within Cypriot waters, with initial results expected to be released in early April.
