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The
discovery of
Gas in Cyprus
The discovery of natural gas in Cyprus came as a surprise
to many, especially after suffering years of financial gloom.
However, the tables have turned, and the Island has become
one of the energy players in the Eastern Mediterranean. A lot
of speculations regarding the volume of the gas found have
spiked the interest of international energy companies. Several
global energy conglomerates have already won drilling licenses
to legally operate in Cyprus.
N
ATURAL GAS was discov-
ered in Cyprus in 2011 by
Noble Energy in the Aphrodite
Field offshore of Cyprus. The
reserve was estimated for about
5–8 trillion cubic feet of the
natural gas, which has posi-
tively changed the economic fate of the country. In
August 2015 Eni, an Italian owned energy con-
glomerate, found gas in the large Zohr field. As a
result, the Government has taken serious measures
to ensure that the potential of the natural gas re-
sources is fully utilized. The Cypriot Government
intends to award even more drilling licenses to
global energy companies with the technical exper-
tise that will explore the region in search of new
mine fields. Nowadays, such outstanding interna-
tional companies as Shell, Exxon Mobile, BP, ENI,
and Total have already started the works. Thus, the
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Mediterranean sea becomes a potentially big and
important gas producing region. Cyprus, Israel and
Greece are already planning to build a pipe system
that will enable them to transport gas to Europe.
THE ECONOMIC FATE OF CYPRUS
NATURAL GAS
Nowadays, Cyprus mainly depends on the im-
ported oil in electricity production. According to
the estimations of Energy Intelligence and German
Marshall Fund one billion of cube meters of gas
per year would be enough to cover Cyprus' needs,
in such a way that the excess gas produced by the
Island can be exported not only to Egypt but also
in Europe. In such a way, by 2025 Cyprus, Israel,
and Greece plan to build a pipe line from the fields
of gas to Greece and Italy, which will have a posi-
tive influence on the economy of the Island. Ac-
cording to the estimations, the price of the project
can reach 6 milliard Euro.
It is of high importance for Cyprus to start
monetizing the gas resources as soon as possible as
it has a direct impact on the economy of the island
which is still suffering. Limited import of Rus-
sian gas to Europe plays a favorable game for the
Island and, as a result, Cyprus has received a strong
support from Brussels and Washington in the
development of mineral resources and building the
infrastructure for gas transportation. Europe sees
Cyprus as a new gas hub that will decrease the reli-
ance on Russia and will reinforce energy security of
the Mediterranean region.
• 2018 EDITION