Cyprus Aims to Finally Solve East Med Gas Riddle

Cyprus is hoping it can finally catch up with its neighbors Israel and Egypt and develop its substantial gas reserves after years of delay. Oil majors have made a string of discoveries in Cypriot waters since 2011, but development remains elusive. Along with its 4.5 trillion cubic foot Aphrodite offshore field, Cypriot Energy Minister George Papanastasiou estimates that a southern cluster of finds could yield between 3.5 billion-4 billion cubic meters per year. Nicosia is now trying to convince Israel of the merits of building liquefaction infrastructure on the Mediterranean island and jointly developing Aphrodite with a second phase of Israel’s giant 22 Tcf Leviathan field. As the European Union seeks alternative gas suppliers amid the war in Ukraine, member state Cyprus believes it has crucial regulatory advantages to make liquefaction projects viable while also managing to attract the attention of deep-pocketed Mideast Gulf national oil companies (NOCs). In a recent interview with Energy Intelligence, Papanastasiou expressed hope that Cyprus and Chevron, operator of Aphrodite and Leviathan, can reach a deal by around end-September that would see liquefaction infrastructure based on the island. If no agreement is reached, it would be a setback for a region that harbors ambitions to supply LNG to Europe and global markets. Meanwhile, Cyprus also hopes that appraisal wells will confirm reserves at the Exxon Mobil Glaucus find and the Calypso, Cronos and Zeus discoveries — led by joint venture partners TotalEnergies and Eni — that would justify liquefaction projects in Cyprus.