Gas deposits off Cyprus are an opportunity for the EU, president says

NICOSIA, Cyprus (AP) — Natural gas deposits off the southern coastline of Cyprus are an opportunity for the European Union to bolster its own energy security by diversifying its supply, the island nation's president said Thursday.

President Nikos Christodoulides told The Associated Press in an exclusive statement that the first of a number of natural gas fields discovered off Cyprus, dubbed Cronos, is expected to start production in the first half of 2028.

“Cyprus is part of the energy equation, with Europe benefiting with added diversification and with the Union’s autonomy being anchored. This is the first step in a path that is bright,” Christodoulides said.

Europe is looking for alternative sources of energy after turning its back on Russian oil and gas following Moscow's full-fledged invasion of Ukraine in 2022, while consumers are being lashed by rocketing fuel prices compounded by the Iran war.

Italian energy company Eni last month signed development contracts with eight main contractors to develop Cronos, estimated to contain around 3 trillion cubic feet (85 billion cubic meters) of the hydrocarbon.

The contracts involve subsea production systems and pipelines, a floating control unit and drilling rig services.

“The conclusion of these agreements, which trigger the commitment of billions of euros in investment, provides for a clearly defined path towards production,” said Christodoulides.

Once the gas is extracted from the field situated some 185 kilometers (115 miles) southwest of Cyprus, it will be conveyed by pipeline to Egypt’s Damietta facility where it will be liquefied and exported to international markets, primarily Europe.

The Cypriot president said production capacity is expected to reach up to 500 million standard cubic feet (14.16 million cubic meters) per day at peak production.

Christodoulides said that for the EU, the significance of Cronos “lies precisely in the opportunity to diversify its sources of supply through the development of a field in a member state and in cooperation with the region.”

Apart from Cronos, there are six other natural gas deposits found within Cyprus’ exclusive economic zone that are being considered for development, including ExxonMobil’s Glaucus and Pegasus fields situated south of Cronos.

ExxonMobil's vice president of global exploration, John Ardill, said in June that natural gas could start flowing from those two deposits by 2033. He said the gas would most likely be piped to Egypt, where it can be liquefied for export.

Christodoulides said Cronos is a “substantive step” toward the country’s first natural gas production which intersects with Europe’s broader need for “the diversification of natural gas supply sources and the enhancement of energy security.”