Energean plc has signed a Letter of Intent with the Cyfield Group for the potential supply of natural gas to Cyfield’s planned power plant in Mari, Larnaca, marking a new chapter in energy cooperation between Israel and Cyprus through a proposed undersea pipeline.
Energean has already submitted a proposal to the Cypriot and Israeli governments for the pipeline, which would transport natural gas from Israel to Cyprus, enhancing interconnectivity and supply stability in the Eastern Mediterranean.
The pipeline would connect the Energean Power floating production and storage vessel, operating in Israeli waters, with Cyprus’s energy infrastructure.
The project requires approval from both governments, but if it proceeds, it is expected to be a pivotal step for regional energy integration, offering Cyprus a new source of natural gas supply and strengthened energy security.
Energy and geostrategic significance
The planned Israel-Cyprus interconnection is expected to broaden Cyprus’s energy options, reducing its dependence on petroleum fuels; promote cleaner electricity generation, supporting decarbonisation and EU climate goals; stabilise energy costs and boost economic development; and create a new energy corridor in the Eastern Mediterranean, strengthening cross-border cooperation.
The initiative is expected to deliver strategic and environmental benefits for Cyprus, accelerating the transition to sustainable energy forms and making the country an important link in the regional energy map.
Officials’ statements
Israeli Energy and Infrastructure Minister Eli Cohen described Israeli natural gas as a “strategic advantage” for the country, noting that selling it to Cyprus would strengthen Israel’s international position and deliver “stability, prosperity and significant state revenues”.
Energean Chief Executive Mathios Rigas said the company is working “for the free market, competition and energy security”, adding that the proposal “offers a practical and economically viable solution to Cyprus’s energy isolation”.
Cyfield Group Chief Executive Giorgos Chrysochos stressed that the partnership with Energean “can transform Cyprus’s energy future”, enabling “cleaner and more efficient electricity generation” and “reduced costs for consumers”.
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