Six natural gas discoveries in Cyprus’s Exclusive Economic Zone (EEZ) hold total estimated resources of 20 trillion cubic feet, Energy, Commerce and Industry Minister Michalis Damianos said on Monday, with first production from the Cronos field expected in the first half of 2028.
Speaking at the 22nd Economist Cyprus Summit in Nicosia, he said the Republic of Cyprus’s energy plans were moving ahead, centred on developing its gas fields and strengthening energy security.
Eni and TotalEnergies took the final investment decision to develop Cronos in July and the main contracts for the project were signed in October, Damianos said. The plan is to use existing infrastructure in Egypt to send Cypriot gas to international markets, mainly in Europe.
Aphrodite and Blocks 5 and 10
Damianos said plans to develop the Aphrodite field were also progressing, with key agreements completed with Egypt. Companies operating in Blocks 5 and 10 of the EEZ are examining options to develop and commercialise their discoveries, he added.
Energy cooperation with Egypt offers significant advantages because using existing facilities lowers costs and gets gas to market faster, the minister said.
Isolated electricity system
Damianos said Cyprus still has a small, isolated electricity system with no interconnections to neighbouring countries and a heavy reliance on imported fuels. That leaves households and businesses exposed to swings in international fuel prices and to the higher cost of carbon emission allowances, he said.
Despite significant progress on solar energy, growing curtailment of renewable electricity generation shows the need for energy storage and a modernised grid, he said. He expected the competitive electricity market, launched in October 2025, to help make better use of renewable output and reduce dependence on imported fuels.
Energy security and the energy transition must advance together, Damianos said, with reliable infrastructure and policies that bring real benefits to households and businesses.
Great Sea Interconnector
The minister said the Great Sea Interconnector (GSI) electricity link creates prospects for ending Cyprus’s energy isolation. The project could strengthen security of electricity supply and allow greater use of electricity generated from renewable sources, he said.
He described the planned interconnection of Cyprus, Greece and Israel as a European Union Project of Common Interest and part of the Energy Highways initiative, highlighting its importance for regional energy security and cooperation.
Investment appeal
Asked what attracts major energy companies to Cyprus, Damianos cited the country’s reliability as an international partner, its relations with Israel, Egypt and Greece and the advantages of its geographical position.
Diversifying energy sources and supply routes is becoming increasingly important, he said, particularly after the disruption caused by the recent crisis in the Strait of Hormuz.
He also described the East Mediterranean Gas Forum as an important mechanism for dialogue and regional cooperation.
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