Cyprus' Natural Gas to Fuel Europe by 2028 Amid Global Energy Uncertainty

Cyprus is set to become an alternative energy source for European nations as early as March 2028, according to Cyprus' energy minister Michael Damianos.

The East Mediterranean region is gaining prominence as a potential supplier of natural gas due to Russia's war in Ukraine and the upheaval in the Middle East. The Cronos natural gas field off Cyprus' southern coast will be developed by TotalEnergies of France and Italy's Eni, with work on the pipeline expected to begin later this year.

The project involves piping gas from Cronos to Egypt's Zohr natural gas deposit, 105 kilometers away, where it will be processed for transport by ship to Europe. This option was chosen due to its lower cost of approximately $2 billion, roughly half the estimated cost of developing other gas fields inside Cypriot waters.

The deal allows for over 3 trillion cubic feet of gas from Cronos to be supplied to European markets, with a clause permitting Egypt to use up to a fifth of that amount for domestic energy needs. While Cyprus' income from this project will not be substantial, the country's importance lies in its ability to commence as an energy producer.