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Next two years critical for Cyprus’ energy strategy, minister says

Cyprus Mail · 2026-07-29

AI SUMMARY

• What happened: Cyprus' Energy Minister Michael Damianos announced that the next two years are crucial for the country's energy strategy as it transitions from gas discoveries to production, with significant developments expected in the eastern Mediterranean. • Why it matters: This transition is vital for enhancing Cyprus' economic development, regional cooperation, and energy security, particularly amid geopolitical uncertainties, while also positioning the eastern Mediterranean as an alternative energy source for Europe. • What to watch next: Key upcoming milestones include the commencement of production from the Kronos field in 2028, final investment decisions on the Aphrodite field by 2027, and ongoing assessments by ExxonMobil and QatarEnergy for further developments in Cyprus' energy sector.

**Next Two Years Critical for Cyprus’ Energy Strategy, Minister Says**

Nicosia, Cyprus – The Energy Minister of Cyprus, Michael Damianos, emphasized the importance of the next two years for the nation’s energy strategy during his address at the World Congress of Overseas Cypriots on Wednesday. As Cyprus stands on the brink of transitioning from gas discoveries to actual production, Damianos described the current moment as a “pivotal point” in the country’s energy journey.

With ongoing developments in the eastern Mediterranean, Damianos noted that Cyprus faces both significant challenges and new opportunities. He highlighted the role of energy in fostering economic development, regional cooperation, and strategic security amid a backdrop of heightened geopolitical uncertainty.

“Our energy policy is consistent and multidimensional,” Damianos stated, outlining goals to reduce energy costs, enhance the security of supply, and maximize the utilization of domestic resources. He underscored the growing significance of the 3+1 energy partnership involving Cyprus, Greece, Israel, and the United States, which has evolved into a critical platform for both political and technical collaboration.

The minister referenced a recent ministerial meeting held in Houston, where the four nations agreed to develop a comprehensive cooperation roadmap, which is expected to be finalized later this year. He also welcomed the establishment of the Eastern Mediterranean Energy Centre at Rice University’s Baker Institute, designed to facilitate collaboration among governments, academia, and the energy sector.

During his discussions with U.S. officials, including Energy Secretary Chris Wright and Jarrod Agen from the White House National Energy Dominance Council, Damianos confirmed the positive momentum in Cyprus-U.S. energy relations, particularly regarding energy security and strategic cooperation.

Turning to the specifics of Cyprus' offshore natural gas program, Damianos reported that the country has made six gas discoveries in its exclusive economic zone over the past 15 years, with estimated reserves of around 20 trillion cubic feet. This positions the eastern Mediterranean as a vital alternative energy source for Europe.

The minister announced that the Kronos field in Block 6 is now in its most advanced phase, following a final investment decision made by Italian energy company Eni and France’s TotalEnergies. With cabinet approval for the development plan secured in May and an exploitation license granted in June, production from Kronos is projected to begin in 2028, marking it as the first Cypriot gas field to enter commercial production.

Natural gas extracted from the Kronos field will be transported via a subsea pipeline to Egypt’s Zohr facilities, where it will be liquefied at the Damietta LNG plant for export, primarily targeting European markets.

Additionally, Damianos indicated that Chevron, NewMed Energy, and BG Cyprus are expected to make a final investment decision on the Aphrodite field in Block 12 by 2027, with production anticipated in the early 2030s. ExxonMobil and QatarEnergy are also assessing development options for the Glaucus and Pegasus discoveries in Block 10, with plans to submit a development proposal in early 2027. The companies have expressed interest in exploring Blocks 4 and 10A, further affirming confidence in Cyprus' energy prospects.

“The next two years are expected to be decisive for the future of Cyprus’ energy strategy,” Damianos reiterated, highlighting the shift from exploration to production as a means to bolster both Cyprus' geopolitical stature and Europe’s energy security.

He also pointed out that the government’s energy policy extends beyond hydrocarbons, as Cyprus continues its transition towards a more sustainable, competitive, and resilient energy model. In his address to the overseas Cypriot community, Damianos acknowledged their role as ambassadors for Cyprus, promoting the country as a reliable energy and investment partner on the international stage.

As Cyprus navigates these critical developments in its energy sector, the focus remains on leveraging its natural resources while ensuring a sustainable and secure energy future.

Source: Cyprus Mail
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