Nicosia: Cyprus is setting its sights on beginning natural gas extraction from its Exclusive Economic Zone (EEZ) by 2027 or in the first half of 2028, as disclosed by Michalis Damianos, the Minister of Energy, Trade and Industry. This announcement comes on the eve of the Extraordinary Informal Meeting of EU Energy Ministers, hosted in Nicosia under the Cyprus Presidency of the Council of the EU.
According to Cyprus News Agency, the recent framework agreement between Cyprus and Egypt, finalized in Cairo, marks a significant step forward in the development of the Cypriot EEZ fields. Minister Damianos emphasized the importance of this agreement, highlighting Cyprus's commitment to advancing its energy program in collaboration with Egypt, the European Union, and various partner companies.
Minister Damianos elaborated on the plans for the natural gas from the 'Aphrodite' deposit, which is slated for export to Egypt for liquefaction and subsequent sale to the Egyptian market. Meanwhile, gas from the 'Kronos' field is intended for export to European markets through Egypt. He pointed out the strategic nature of Cyprus's cooperation with Egypt in this energy endeavor.
For the 'Aphrodite' field, the preliminary engineering design (FEED) is scheduled for January 2027, with a final investment decision expected within the same year. The first natural gas from 'Aphrodite' is anticipated two to three years following this decision. As for the 'Kronos' field, discussions continue with ENI and Total to finalize key agreements, with high-level meetings having already taken place to ensure progress.
Minister Damianos reiterated the timeline for the first natural gas extraction from the Cypriot EEZ, confirming expectations for late 2027 or early 2028. Additionally, he mentioned ongoing discussions with Exxon for the commercialization of other fields licensed to the Exxon and Qatar Energy consortium, although no agreement with Egypt has yet been reached.
Commenting on the 'Ishai' field, Damianos noted that negotiations are in their final stages but have been delayed due to the regional situation in the Middle East, particularly in Israel. He clarified that an agreement on 'Ishai' is not essential for Chevron to proceed with 'Aphrodite's' exploitation, but it would be beneficial.
Minister Damianos expressed optimism about reaching an agreement on 'Ishai' soon, with several legal framework issues having been resolved. He anticipates closure on this matter in the coming weeks or months.