Natural gas from Cyprus is on track to be exported to Europe in 2027, according to Egypt’s Petroleum Minister Karim Badawi. This announcement came after discussions between Cypriot and Egyptian officials in Nicosia.
Photo: cyprus-mail.com
Cypriot natural: Collaboration Between Cyprus and Egypt
At the heart of this initiative is the plan to expedite the transport of Cypriot natural gas to Egypt, where it will undergo liquefaction. Badawi stated that the natural gas sourced from the Kronos gas field, located in Block 6 of Cyprus’ exclusive economic zone (EEZ), is expected to be ready for delivery to Europe by the target date.
Photo: cyprus-mail.com
Strategic Importance of the Project
Badawi emphasised the strategic significance of this collaboration, asserting that it has the potential to transform Cyprus into a significant natural gas exporter to Europe. He noted, “We are all collectively committed to delivering the first Cypriot gas through Egypt’s terminals to Europe by 2027.” This commitment signals a unified effort between both nations to harness the energy resources in the eastern Mediterranean.
Investment Agreements and Timelines
During the meeting, Badawi also highlighted the urgency of finalising investment agreements crucial for the project. He conveyed his intention to accelerate the completion of these agreements to allow for a final investment decision by the end of the year. The Egyptian government, designated as the host government for Block 6, is set to sign the final investment agreement concerning the Kronos field with a consortium that includes French multinational Total and Italian energy company Eni.
Utilising Existing Infrastructure
Eni’s involvement is particularly notable due to the proximity of the Kronos reservoir to Egypt’s Zohr gas field, which Eni operates. This geographical advantage means that Eni can utilise its existing infrastructure to transport Cypriot natural gas to the Segas liquefied natural gas (LNG) terminal in Damietta, Egypt.
Development Plans and Future Outlook
Cypriot Energy Minister George Papanastasiou expressed optimism about the imminent signing of agreements covering the entire supply chain—from liquefaction in Damietta to exporting LNG to Europe. He indicated that the project is entering a critical phase, with plans for a final development and production strategy for the Kronos field soon to be established jointly by both governments.
Enhancing Energy Security in Europe
This project is seen as a milestone in enhancing energy security for the European Union. Papanastasiou remarked, “The political guidelines have been set, and we are moving forward in coordination with the companies with the aim of making a final investment decision by the end of 2025 and having the first production of natural gas during 2027.”
Strengthening Ties with the European Union
President Nikos Christodoulides stated that Cyprus will assume the Council of the European Union’s rotating presidency in the first half of next year. One of his objectives during this period is to strengthen ties between the EU and the eastern Mediterranean, particularly with Egypt. He announced plans for a meeting with heads of government from all 27 EU member states and regional countries on April 23 next year.
Broader Energy Cooperation
In addition to the Kronos project, Badawi mentioned ongoing discussions regarding the development of the Aphrodite gas field, located in Block 12 of Cyprus’ EEZ. He stated that significant progress has been made, reinforcing the importance of energy cooperation between Cyprus and Egypt. “Our cooperation in the energy sector with the Republic of Cyprus is very important and is expanding daily,” he said.
Current Developments in Pipeline Infrastructure
Seabed surveys to establish a route for the pipeline connecting Cyprus’ EEZ to Egypt for liquefaction commenced in June. Initially, these surveys aimed to facilitate gas from the Aphrodite gas field to be transported to Damietta. This followed a framework agreement signed by the Cypriot and Egyptian governments, along with American multinational Chevron, Israeli energy company NewMed Energy, and the BG Group.
Positioning Cyprus in the Energy Market
The agreement is intended to establish a foundation for the commercialisation of gas reserves in the region. Badawi’s visit to Cyprus served to reinforce the collaborative spirit between the two nations as they move towards realising the potential of their energy resources. “We are here to support the Republic of Cyprus in the full development of its energy reserves,” he affirmed.
