The potential for energy collaboration in the broader Cyprus region, in light of recent developments following the Middle East crisis, was extensively examined during a panel discussion at the 19th Annual Cyprus Summit organised by The Economist.

Speaking during a panel discussion, Minister of Energy, Trade, and Industry, George Papanastasiou, emphasised the critical importance of developing infrastructure to harness the natural wealth located in the Cypriot Exclusive Economic Zone (EEZ). He pointed out that while Cyprus boasts significant natural gas reserves, a lack of essential infrastructure hinders their effective utilization. "Without the necessary infrastructure, it's as if these discoveries don't exist in our EEZ," Papanastasiou said.

Commenting on the regional situation, he noted that Egypt is currently facing a gas shortage and daily blackouts. He also highlighted Israel's effective use of its natural resources, making the country largely self-reliant in terms of energy. In contrast, he said, Cyprus faces high electricity costs and has yet to fully exploit its resources in the EEZ due to the absence of necessary infrastructure. Papanastasiou stressed the need for infrastructure development to secure the country's energy future and economic prosperity. He also noted that even if gas exports were directed elsewhere, the revenue generated would still benefit the citizens of Cyprus and contribute to the country's future.

Referring to rising costs associated with emissions, which burden Cyprus's electricity market, the Minister revealed that these costs are expected to reach half a billion euro next year, highlighting the urgency of addressing the issue.

Constantinos Filis, Director of the Institute of Global Affairs and Associate Professor at the American College of Greece, emphasised Israel's pivotal role in the region and the potential negative consequences of suspending energy projects. He mentioned that unless infrastructure becomes a target, Israel is unlikely to halt its program. Filis also expressed optimism about the possibility of joint ventures between Cyprus and Israel, even amid the ongoing crisis.

Regarding plans to export Israeli gas via Turkey, he said that after the latest development this scenario was unlikely. The current situation, he suggested, is increasingly turning Israel's attention toward Cyprus and Greece.

Filis further discussed Egypt's diminishing gas production, limiting its export potential and prompting the government to prioritise domestic market needs. Egypt's existing LNG facilities provide both Israel and Cyprus with an opportunity for export, he said.

He highlighted the potential for Israel to use larger quantities of gas for its internal market, a negative development as he said since Cyprus cannot alone transform the Eastern Mediterranean into a global energy hub. He also pointed out the risk of Turkey's marginalisation in energy developments, which could potentially lead Ankara to revert to past aggressive actions, such as deploying drill ships in Cypriot waters, thereby discouraging potential investors.