“End of 2027 is a stretch target, but it’s something which is doable,” he said, edging back an estimate from earlier this year that gas from the project could reach international buyers by the middle of 2027.
The Oct. 31 interview came shortly after the Cronos partners — Italy’s Eni and France’s TotalEnergies — inked an agreement with the Egyptian Natural Gas Holding Company to enable the export of the Cypriot gas through Egypt’s Damietta LNG facility via existing infrastructure from Egypt’s offshore Zohr gas field.
In light of the agreement, Papanastasiou expects the Cronos partners could take FID in Q1 2026. This is slightly later than the end-2025 FID target he said has been discussed with the two governments, and which Papanastasiou described as “very stretched”.
Eni, which operates both Cronos and Zohr, did not respond to a request for comment.
The start-up would mark a major milestone for Cyprus, which has yet to develop any of its large offshore gas discoveries. The East Mediterranean country boasts gas resources estimated at as high as 25 Tcf, offering Europe a potential additional source of homegrown supply as the EU works to phase out Russian gas and LNG imports.
Besides commercializing the Cronos deposits, Papanastasiou also anticipates that the burgeoning collaboration with Egypt will be instructive for developing the country’s other gas resources.
“Upon having a successful Cronos project, I believe this will give us some ideas of where the other discoveries may be heading to — either through synergies or separate projects, but definitely the companies need to consider how they minimize capex,” he said.
“The result of this effort that we are trying with Cronos, possibly will give us some more ideas [on] how we develop the other discoveries.”
There is also the possibility of further finds as the country mulls another licensing round to allow more exploration.
“We are considering [another round] because we see some interest from companies that are not in our exclusive economic zone now,” he said. The minister did not provide further details on a timeline.
Domestic gas needs
Papanastasiou was similarly circumspect about the timeline for finalizing infrastructure to meet Cyprus’s own gas needs, which he estimated at around 0.6 Bcm/year.
Even as the country seeks to bring its gas deposits to market, it is also trying to become an LNG importer.
The government has spent the better part of a decade developing an LNG regasification terminal to replace the fuel oil and diesel that power some 80% of its electricity generation with gas.
The road has been fraught. The development at the southern port of Vasilikos has been plagued by delays and disputes, leading to the termination of the initial EPC contract with a consortium led by China Petroleum Pipeline Engineering, according to an analysis from Commodity Insights.
The terminal remains “50% completed,” and French engineering company Technip Energies is developing a report assessing any shortfalls in the existing terminal design to help finish the work, according to Papanastasiou.
“If these gaps are manageable, then we will proceed very fast in order to complete the terminal,” he said.
The minister declined to give a more precise estimate for when he expects the terminal will be ready, citing Technip’s ongoing analysis.
Until receiving the report, “I cannot provide a secure timeline,” he said.
Israel pipeline
Another option to bring gas to the island has recently surfaced. Gas-focused producer Energean has signed a letter of intent to potentially sell gas from Israel to Cypriot energy group Cyfield via a proposed new pipeline connecting the East Mediterranean countries.
Papanastasiou said the ministry is “evaluating” the idea.
The pipeline would be significant due to Cyprus’s status as an emerging gas market under the EU’s Gas Directive. This allows it to have a monopolistic gas supplier: publicly-owned Cypriot gas company DEFA, which is the sole permitted importer and distributor of gas in the country.
Approving the Energean deal would require Cyprus first to change its emerging market status with the EU.
While Papanastasiou acknowledged the value of having alternative supply sources, the minister cast doubt on the viability of the pipeline proposal given Cyprus’s limited gas needs.
“This is a very niche market,” he said. “Having an LNG terminal on its way to be completed — not both projects can survive for such a small quantity.”
Energean has framed the proposal as a way to bolster Cyprus’s energy security.
“Countries and governments should look to bring competition, security of supply, and low gas prices for the consumer,” CEO Mathios Rigas told Platts, adding, “Protectionism and overregulation doesn’t help the free market.”
Platts, part of S&P Global Commodity Insights, assessed the East Mediterranean LNG marker at $10.309/MMBtu Nov. 5.
