Cyprus aims for gas exports by 2028 as conflict heightens supply tensions

Cyprus could begin producing natural gas for export as early as 2028, Energy Minister Michael Damianos said, potentially strengthening Europe's push to diversify its energy sources as regional conflict tightens focus on supply.

Tensions in the Gulf has raised concerns about energy transits through chokepoints like the Strait of Hormuz, a corridor for roughly a fifth of the world's oil trade, which has come to a near standstill after the U.S. and Israel began strikes on Iran on February 28.

Discussing the development of the Cypriot offshore gas discovery Cronos, Damianos told Reuters in an interview: "Hopefully we will have gas by 2028."

EU-WIDE PRIORITY

"I think generally the crisis in the Middle East shows that we should exploit our reserves, especially those that are outside of the Gulf region," Damianos said. "You cannot be dependent on specific areas."

"Having Eastern Mediterranean reserves that are exploitable should be a priority, not just for Cyprus, but generally for the EU," he said.

Cyprus has discovered roughly between 15 and 18 trillion cubic feet of gas in six areas of its exclusive economic zone, though development has been slow as discoveries are spread across multiple offshore blocks and require separate investment decisions.

The Cronos field, discovered by Italy’s Eni ENI.MI and France’s TotalEnergies TTEF.PA, holds just over three trillion cubic feet of gas — enough to supply Cyprus for decades, or support exports to regional markets.

The field is expected to be developed using existing infrastructure in Egypt, where the gas would be processed and liquefied before being shipped mainly to European markets.

Damianos said the possibility of building a liquefied natural gas export terminal in Cyprus has not been ruled out, but would depend on larger discoveries.

POWER CABLE PLANNED

Alongside gas development, Cyprus is also pursuing major electricity infrastructure projects, including the Greece–Cyprus–Israel (GSI) electricity interconnector.

Damianos said the planned undersea cable is primarily intended to strengthen the island's energy system and reduce its isolation from European power networks.

"It is an important project with respect to security of supply," he said.