Cyprus Gas Field to Supply Europe by March 2028

Natural gas from an undersea deposit off the coast of Cyprus is slated to begin supplying European consumers by March 2028, according to Cyprus's Energy Minister Michael Damianos. Damianos stated that the Eastern Mediterranean region is rapidly emerging as a crucial alternative energy source for European nations, driven by the ongoing war in Ukraine and instability in the Middle East, which necessitates the continent's search for new energy suppliers. Partners TotalEnergies, a French energy company, and Eni, an Italian multinational energy company, made a final decision last month to proceed with the development of the Cronos natural gas field, located off Cyprus's southern coast. This project marks the first instance of natural gas extracted from Eastern Mediterranean deposits being channeled to European markets.

Damianos emphasized the strategic importance of Cyprus's gas supply for Europe during this period of geopolitical tension, highlighting its role as an alternative gas source amidst the conflicts in Ukraine and the Middle East. The consortium's timetable indicates that construction on a pipeline connecting the Cronos field to existing infrastructure at Egypt's substantial Zohr natural gas deposit, situated approximately 105 kilometers (65 miles) away, will commence later this year. This pipeline construction is projected to take up to 18 months to complete. Following the pipeline's completion, the natural gas will be transported to the Damietta processing facility on Egypt's northern coast. At this facility, the gas will undergo liquefaction for subsequent shipment to Europe via vessels.

The decision to pipe the Cronos gas to Egypt for processing was determined to be the most economically feasible option. The estimated cost for this approach is approximately $2 billion (1.73 billion euros), which represents about half the projected cost of developing other gas fields within Cypriot territorial waters, primarily due to its proximity to established infrastructure. While the agreement stipulates that all of Cronos's reserves, exceeding 3 trillion cubic feet (tcf), are designated for export to Europe, a specific clause within the deal allows for approximately one-fifth of this volume to be allocated to meet some of Egypt's domestic energy requirements. Damianos characterized the Cronos reserve as "a small reserve," suggesting that its significance for Cyprus lies more in its strategic importance as an energy supplier to Europe rather than substantial national income generation.