A project that will strengthen Cyprus’ energy security and regional energy cooperation
Energean has announced the signing of a Letter of Intent (LOI) with Cyfield, a leading Cypriot industrial and energy group, for the potential supply of natural gas to Cyfield’s planned power generation facility in the Mari area of Larnaca.
Following the LOI, Energean has proposed to the Governments of Cyprus and Israel the export of natural gas from Israel to Cyprus via a new pipeline, a project designed to benefit both markets, promote regional energy collaboration, and contribute to the development of a competitive and interconnected East Mediterranean gas market.
Under the proposal, Energean will design, construct, own and operate a new subsea pipeline connecting the FPSO 'Energean Power', currently producing in Israeli waters, directly to Cyprus.
The agreement and project are subject to the approval of the Governments of Cyprus and Israel. Should all necessary approvals be obtained, the project would mark a significant step forward for regional energy integration and security of supply.
The interconnection between Israel and Cyprus will:
- Diversify gas supply sources for Cyprus and enhance energy security;
- Promote cleaner power generation by replacing oil-based fuels with natural gas;
- Support economic growth by stabilizing energy costs and improving efficiency;
- Reinforce regional cooperation and contribute to the development of an East Mediterranean energy corridor.
The project will also bring environmental and strategic benefits to Cyprus, including reduced CO2 emissions and closer alignment with EU decarbonization objectives, while demonstrating the potential for constructive cross-border energy collaboration between Israel and Cyprus.
Eli Cohen, Minister of Energy and Infrastructure of Israel, stated: 'Israeli natural gas is a tremendous strategic asset for the State of Israel. The sale of gas to Cyprus will strengthen Israel’s political standing in the region and among European countries, help enhance stability and prosperity in our area, and generate billions of shekels in revenue for the state. I intend to continue promoting the expansion of Israel’s gas export destinations.'
Mathios Rigas, CEO of Energean PLC, stated: 'Energean consistently strives for the operation of a free market and fair competition, the security of supply, and the delivery of natural gas to Cyprus for the benefit of the economy and consumers. Our proposal offers a practical and cost-efficient solution to Cyprus’s energy isolation by providing direct access to natural gas from a neighbouring source, strengthening regional energy cooperation and supporting the transition to cleaner, more sustainable energy.'
George Chrysochos, CEO of Cyfield, stated: 'This collaboration with Energean has the potential to transform Cyprus’s energy future. Access to natural gas will enable cleaner and more efficient power generation, reduce costs for consumers, and help achieve national climate targets. We look forward to working closely with the Cypriot and Israeli authorities to bring this important initiative to life, subject to all required approvals.'
Source: Energean
