Nicosia: The Republic of Cyprus follows a consistent and multidimensional energy policy, said the Minister of Energy, Commerce and Industry, Michael Damianos, on Wednesday, noting at the same time that the next two years are expected to be decisive for the future of the Cypriot energy strategy. Damianos was addressing the World Conference of Diaspora Cypriots, which takes place in Nicosia.
According to Cyprus News Agency, Damianos emphasized that Cyprus is at a pivotal point in its energy journey, where developments in the Eastern Mediterranean present significant challenges but also open new prospects. He highlighted that in an environment of increased geopolitical uncertainty, energy has emerged as a decisive factor in economic development, regional cooperation, and strategic security. The Republic of Cyprus aims to reduce energy costs, strengthen security of supply, and utilize domestic potential through a consistent and multidimensional energy policy based on cooperation and respect for international law.
Damianos further explained the importance of the 3+1 cooperation scheme between the Republic of Cyprus, Greece, Israel, and the United States. This initiative has evolved into a substantial mechanism for political and technical dialogue to promote energy cooperation, security, and stability in the Eastern Mediterranean. It extends beyond hydrocarbons to cover Renewable Energy Sources (RES), electrical interconnections, and new technologies, contributing to an integrated and interconnected energy ecosystem.
Recent developments in the United States, particularly in Houston, confirm the momentum gained by this cooperation. During the Ministerial Meeting of the 3+1 format, the four countries reaffirmed their common will to enhance energy security and regional cooperation. Regular contacts at the level of service working groups were agreed upon to draw up a Roadmap for Cooperation of the 3+1 Energy Dialogue, expected to be approved within this year.
Damianos also announced the launch of the Eastern Mediterranean Energy Centre at the Baker Institute of Public Policy at Rice University, Houston. This Centre aspires to become a hub for cooperation and exchange of know-how and best practices among governments, academic institutions, research centers, and the energy industry. For Cyprus, the Centre can be an important tool for addressing challenges related to the energy transition, strengthening the integration of RES, energy storage, and competitiveness of the electricity market.
The Minister emphasized the positive climate in Cyprus-US relations in the energy sector, underscoring the increasing importance of energy cooperation in the Eastern Mediterranean amid recent geopolitical developments. The need to diversify energy supply sources and routes is more urgent than ever. Cyprus, as an EU member state and a reliable partner in the Southeastern Mediterranean, seeks to play a leading role in shaping a new energy landscape.
Over the past fifteen years, Cyprus has recorded significant successes in its hydrocarbon exploitation program, with six natural gas discoveries and estimated reserves amounting to approximately 20 trillion cubic feet. These discoveries confirm Cyprus's significant energy potential and strengthen the Eastern Mediterranean's role as a reliable alternative source of supply for Europe. The Cypriot hydrocarbon program is entering a new critical phase, transitioning from discoveries to development and production projects.
The 'Kronos' field in Block 6 is the most mature project, with Eni and TotalEnergies announcing the Final Investment Decision. Production is expected to start in 2028, making 'Kronos' the first commercially exploited field in Cyprus. Natural gas will be transported via subsea pipelines to the 'Zohr' field in Egypt for liquefaction at Damietta LNG facilities, with European markets as the main destination.
The Final Investment Decision for the 'Aphrodite' field in Block 12 is expected in 2027, with production scheduled for early 2030. ExxonMobil and QatarEnergy are evaluating development options for the 'Glafkos' and 'Pegasus' fields in Block 10, with a Development and Production Plan expected in early 2027. There is also interest in new research opportunities in Blocks 4 and 10A, indicating confidence in Cyprus's energy prospects.
The next two years are crucial for Cyprus's energy strategy, transitioning from discovery to production phase, strengthening its geostrategic role, and contributing to European efforts for secure and diversified energy supply. The energy policy of Cyprus also promotes a transition towards a sustainable, competitive, and resilient energy model.
Damianos acknowledged the Cypriot diaspora as valuable allies in promoting Cyprus as a reliable energy and investment partner. Cyprus possesses stable institutions, a clear strategic vision, strong international partnerships, and a mature energy ecosystem, positioning it to play a key role in the Eastern Mediterranean's energy future.