Recognising Cyprus’ unique geopolitical position, the government is committed to maximising the enabling and value-adding role the country can play across key sectors – most notably in energy, Minister of Energy, Commerce and Industry, George Papanastasiou, said on Monday speaking at the Eastern Mediterranean Energy Conference and Exhibition (EMC 2025), that takes place in Limassol.
“Coordination at a regional level, to achieve common goals in the areas of Energy Transition and Energy Security, is of paramount importance and Cyprus continues to lead and support a number of bilateral and multilateral initiatives,” the Minister added.
He noted that the values and principles we share with regional partners, including respect for international and maritime laws, have fostered deeper consultation and collaboration.
The government’s strategy for affordable, secure and cleaner energy for all consumers – households and businesses is based on four pillars, he said. The first one is Renewable Energy. The Minister noted that “we will continue to promote the penetration of renewable sources in the country’s energy mix, whilst also working to upgrade the electricity grid and invest in storage systems to ensure efficiency and stability”. The second pillar, he added, is LNG Import and Regasification. “We remain steadfast in delivering the FSRU project, which is intended to be the cornerstone of conventional energy production on the island, ensuring reliable, affordable and cleaner energy”, Papanastasiou said.
Referring to the third pillar, which is Regional Electrification, the Minister said that connecting Cyprus’ electricity grid with those of Greece and Israel is a priority for the government, as it will finally end the country’s energy isolation, enhancing security of supply, fostering competition between energy producers and providers and creating opportunities for energy exports.
Last pillar, he noted is the Exploitation of Cypriot Gas Reserves. He recalled that Cyprus has made great progress in its exploration efforts for natural gas, with six significant discoveries to date – Aphrodite, Calypso, Glaucus, Cronos, Zeus and, most recently, Pegasus – and with more exploration to come.
“Monetisation efforts, in close partnership with our licenced block holders, are advancing and we are confident that Cyprus will soon become a natural gas producer. This will be a milestone that will enable the Republic of Cyprus to fulfil its role in unlocking cleaner energy for our region, Europe and beyond, while also delivering tangible benefits to the Cypriot economy,” he went on to say.
He noted that several monetisation options are currently under consideration, including the use of existing infrastructure in Egypt, as well as newly matured technologies such as Floating Liquefied Natural Gas (FLNG) and Modular LNG for onshore applications.
“The decisions we make now regarding infrastructure investments in Cyprus’ EEZ will be critical, not only for our initial production goals, but also for supporting our long-term ambitions as a natural gas producer,” he stressed.
In the near term, he continued, our initiatives for progressing the Cronos and Aphrodite discoveries are gaining traction, adding that we are on track to finalise the Cronos development plan by the end of this year, paving the way for the licensees’ Final Investment Decision. Similarly, for Aphrodite, he said, the licence holders are expected to complete their pre-FEED (Front-End Engineering Design) study and enter FEED within the same timeframe.
The Cypriot government’s policy framework and decision-making regarding the exploitation of our Gas Resources is guided by four value drivers, Development Speed, Creation of Cyprus EEZ Infrastructure, Production and Direct and Indirect Benefits for the Cyprus Economy, he said.
“These drivers must be considered within the broader parameters of Value and Achievability. Our efforts to make progress on exploitation will be structured through alignment with our license holders and project partners to agree and deliver on common objectives,” the Minister pointed out.
At the same time, he added, our focus on exploration also remains strong.
“I wish to once again thank and congratulate our Block 10 licence holders for the successful and safe execution of the Pegasus discovery well, announced in July this year. Continued exploration efforts by all our licence holders will further realise the hydrocarbon potential of Cyprus’ EEZ and, thus, enhance confidence in our exploitation strategy,” Papanastasiou concluded.