Nicosia: The final investment decision (FID) for the management of the "Kronos" gas field is anticipated by the end of March, aiming to direct the first natural gas through the "Zohr" gas field to Egypt for processing and sale on the European market by the first half of 2028, as stated by Minister of Energy, Commerce and Industry, Michael Damianos, during a session with the House Committee on Energy.
According to Cyprus News Agency, Damianos also mentioned that an Israeli delegation is currently in Cyprus for intensive negotiations to finalize the agreement for the "Ishai" gas field, with an estimate that the agreement could be concluded in the next 1-2 months. Meanwhile, Ministry of Energy official Achilleas Sotirelis informed the Committee that the Pre-FEED (Front-End Engineering Design) for the "Aphrodite" gas field was completed last February, and the project has now entered the final detailed design phase, expected to conclude by the end of the year. The FID for this project is anticipated in 2027.
Former Minister of Energy George Papanastasiou highlighted that under Noble Energy, the project included a production unit in the field and plans to transport dry natural gas to Egypt. This strategy was reaffirmed with a new joint venture with Chevron in February 2025, which is progressing rapidly. The arrangement includes a production unit in the field and a sea pipeline to Egypt, with the intention of supplying the Egyptian market with natural gas from 'Aphrodite,' a plan accepted by the Republic of Cyprus.
Sotirelis commented on the prospect of domestic consumption of natural gas from Cypriot fields, noting that due to the small market size, it is not attractive for companies. Instead, Egypt's larger production gap makes it a more viable option for companies to send Cypriot natural gas there. Papanastasiou echoed this sentiment, emphasizing that the consortium, not the Republic of Cyprus, is the investor and is expected to make financially appropriate decisions in consultation with the state. He added that the 3.5 trillion cubic feet found in 'Aphrodite' is substantial, and directing it exclusively to Cyprus would not be sustainable.
Minister Damianos noted that larger quantities might prompt companies to consider Cyprus as a liquefaction hub, but for now, if companies prefer to direct the gas to Egypt, that should proceed. The decision can be revisited in broader strategic planning, but no commitments can be made currently.
Regarding the 'Kronos' gas field, discussions with ENI suggest that the FID will proceed by the end of March, with natural gas expected to reach Egypt for processing and sale to the European market by the end of 2027 or early 2028. Initially, 100% of the gas will be directed to Egypt, with future provisions for up to 20% use in the domestic Egyptian market.
Sotirelis also mentioned that block 10 of Cyprus' Exclusive Economic Zone, including the "Glafkos" and "Pegasus" fields, is under evaluation by Exxon, with final decisions pending. The estimated reserves are between 6-9 trillion cubic feet.