Cyprus has the potential to become a significant supplier of liquefied natural gas (LNG) to the European Union, provided pre-drilling surveys are confirmed, Energy Minister George Papanastasiou has said.
Speaking to CyBC, Papanastasiou emphasised the importance of LNG in the wake of Russia’s Gazprom halting gas exports earlier this week, marking a new era for the global LNG market. He highlighted the growing focus of the EU on the Eastern Mediterranean as a key resource hub. “The key entry points for LNG imports to the continent are in Greece, Poland and Germany,” and Cyprus could become a supplier if the preliminary highly promising geological survey results in the island’s Exclusive Economic Zone (EEZ) are confirmed, Papanastasiou said.
He urged “cautious optimism” as the fifth-generation drillship Valaris prepares to begin exploration on the Electra deposit in Block 5 within the next two weeks. This will be followed by drilling at the Pegasus deposit in Block 10, both led by the ExxonMobil consortium. “Based on the findings, we will evaluate the feasibility of constructing infrastructure for LNG liquefaction in Cyprus to enable direct exports to Europe,” Papanastasiou said.
ExxonMobil announced in November its decision to begin drilling for natural gas in Cyprus’ EEZ, with Papanastasiou at the time describing this development as a “milestone”. He noted that a significant discovery at Electra, even smaller than pre-drill estimates, could revive plans for a liquefaction plant at Vassiliko.
On domestic energy supply, the minister reiterated efforts to make energy costs “sustainable for households and businesses” while “securing a diversified energy mix”. This includes renewable energy sources (RES), conventional energy production at Dhekelia, and LNG at Vassiliko. “The aim is to expand rooftop photovoltaic installations and maximise their potential with each house generating and making use of its own energy production, preventing the loss of energy by introducing storage,” the minister said. Storage is a top priority with scenarios being examined for central installations versus storage-at-source at PV parks, he said.
While renewables like wind and solar are essential, their inconsistent supply means supplementary conventional energy sources will remain necessary, he explained. This includes the long-term supply expected through the interconnector with Greece and Israel. Until the interconnector becomes operational, Cyprus will rely on upgraded generators at Dhekelia and LNG delivered to Vassiliko. The competitive electricity market is set to launch on a pilot basis this month, with full implementation expected by July 2025.
Papanastasiou also provided updates on key LNG projects. The floating LNG unit Prometheus, currently undergoing certification in Malaysia, remains on schedule. He noted that Chevron, which operates the Aphrodite gas field in Block 12, is awaiting a government response to its proposed production plan submitted a year ago. A decision is expected within one or two weeks.
Meanwhile, Eni, which operates the Chronos field in Block 6, is expected to submit a production plan within the first quarter of 2025.
Source: Cyprus Mail
