We are convinced that the Republic of Cyprus, in its capacity as a member state of the European Union, but also as an equal partner in trilateral and multilateral cooperation in the Eastern Mediterranean, can become the reliable energy arm of the Union in the region, contributing substantially to joint efforts to enhance energy security, the Minister of Energy, Commerce and Industry George Papanastasiou said on Thursday, during a panel discussion on energy security and diversification at the 20th Annual Cyprus Summit taking place in Nicosia.

In his introductory statement, Papanastasiou said that the countries of the region, as well as all the Member States of the European Union, are actively seeking energy outlets at the individual and collective level to ensure uninterrupted energy supply, taking into account both the need to reduce the prices of energy products in order to protect the competitiveness of national economies and the important measures that need to be taken to mitigate climate change.

He added that in the meetings and discussions with neighbouring countries, it is a common finding that if the necessary synergies between states and companies, as well as the practical support of the European Union to accelerate the exploitation of the energy wealth in the Eastern Mediterranean, exist, the region can provide an alternative energy corridor to Europe, which will consist of various sources and routes.

"We are convinced that the Republic of Cyprus, in its capacity as a member state of the European Union, but also as an equal partner in trilateral and multilateral cooperation in the Eastern Mediterranean, can become the reliable energy arm of the Union in the region, contributing substantially to joint efforts to enhance energy security", he stressed, adding that the basic prerequisite for the above is the optimal exploitation of the natural gas discoveries in the Exclusive Economic Zone of the Republic of Cyprus.

He added that initially this corridor can be achieved by transporting natural gas either by a pipeline or by ship as liquefied natural gas, while in the medium and longer term, it is possible that hydrogen produced in the Eastern Mediterranean will be transported in parallel, as well as green energy from renewable sources, which will be exported to Europe through electrical interconnections, such as the interconnection of Cyprus with the electrical grids of Europe.

He also said that the Greece-Cyprus-Israel electricity interconnection project, which is a European project of common interest, is currently at the stage of cable construction and sea bottom exploration, which he said is being carried out simultaneously in the territorial waters of Cyprus and Greece.

He also stressed that the governments of Cyprus and Greece, together with the project's implementing agency, have succeeded in recent months, through intensive consultations, in ensuring the sustainability of the project during its construction period, which will last 5 years.

To this end, the Republic of Cyprus has decided to financially support the project with €25 million per year for 5 years, capped at €125 million, its main concern being not to burden Cypriot electricity consumers during the construction period, while maintaining the attractiveness of the project to potential investors, he added.

“At this stage both the European Investment Bank and the Government's advisors are studying all the relevant elements and will shortly deliver their views for a decision on Cyprus' participation in the equity of the company that will own the project”, he noted.

Cyprus has a concrete proposal, which creates the prospects for the development of the Eastern Mediterranean energy corridor and at the same time for the country's transformation into an energy hub in the Eastern Mediterranean, he then said, adding that in this direction, alongside the process that DEFA is running for the import of LNG, which will be regasified at the ETYFA terminal under construction for use in power generation, the alternative option of importing gas to Cyprus in gaseous form via pipeline is also being studied by interested companies.

"If our plans come to fruition, our country will be able to secure gas from the Eastern Mediterranean for use in power generation, but also for liquefaction for export to Europe and other markets. At the same time, of course, we are intensifying the processes for the exploitation of natural gas deposits in the Exclusive Economic Zone of the Republic of Cyprus”, Papanastasiou continued, adding that among other developments being promoted are the finalization within the coming January of the development and production plan of the Aphrodite field and the start of detailed technical designs by the licensed consortium before the end of 2025.

He also referred to the preparation and submission by the ENI and Total Energies consortium in early 2025 of a development and production plan that will accelerate the development of the “Kronos” gas discovery, adding that the consortium has set a target of taking a final investment decision before the end of 2025 and producing gas within 2027.

He also said that within 2025, the Exxon Mobil and Qatar Energy consortium will drill two exploratory wells in blocks 5 and 10, while they are also in the process of working out options for developing the “Glaucus” gas discovery.

"As far as energy issues are concerned, it is no exaggeration to say that the Eastern Mediterranean region, like the whole of Europe, is currently at a very critical crossroads. The main concern of our countries is on the one hand to secure our energy supply at the lowest cost, and on the other hand to acceleration our Green Transition. Therefore, the partnerships that are being formed, the synergies that are being developed and the decisions taken today are bound to determine to a large extent our future common course," the Minister concluded.

For his part, ExxonMobil’s Vice-President for Global Exploration, John Ardill, said that there is not a lot of debate about the growing need for energy, but where the energy is going to come from and how much of that is going to be from oil and gas or renewables, the bottom line being that we are going to need all of it.

In terms of the importance of natural gas, he said that it provides the opportunity to replace higher-emissions forms of energy such as burning coal or biomass and lignite in some cases and to reduce emissions today, with technology that exists today, acting as a transition fuel, adding that in the longer term, natural gas can be converted into hydrogen and in conjunction with carbon capture and storage, help in the decarbonisation process.

Speaking of discoveries in Israel, Egypt, but also in Cyprus with Aphrodite, Kronos and Glaucus, he said that the challenge now is to get these discoveries developed.

He added that ExxonMobil has spent the last two years collecting very detailed three-dimensional seismic data which allowed them to see below the surface in the Eastern Mediterranean.

“I can confirm that we have been successful in those seismic acquisitions. We have identified several large prospects and the next stage is to bring in a drilling rig and to test those. That rig is on its way from West Africa as we speak. It will arrive in Egypt in mid-December, drill one well there, which will take one month, and then they will come to Cyprus and we will spud our first well in mid-January. So, when we get together next year, I will be here to talk about well results and hopefully gas discoveries and that will then transition to a discussion around how we develop that gas”, he noted on the issue.

Matthew Bryza, former US Deputy Assistant Secretary of State for European & Eurasian Affairs, former US ambassador to Azerbaijan, and member of the Overgas Board of Directors, said that there is an opening available for Cyprus to be a natural gas delivery source and hopefully a transit way into the EU, noting however that Cyprus has not yet discovered enough natural gas to be able to export it.

On the subsea pipeline and the electricity cable from Israel to Cyprus, Crete and then to mainland Greece, he said it seems to be “an extremely challenging project in terms of the economics if it doesn't receive huge subsidies”, while posing the question whether there could be a way to export gas when the politics in Turkey change.

“I am sensing now a shift in thinking (in Turkey) not just because President Trump is coming back. In the last couple of weeks there have been signals coming out of Ankara about maybe having a go again at some sort of a negotiation. The official Turkish policy has been that of the Turkish Cypriots, which is two-state solution, but maybe that is softening a little bit now, we will see”, he noted in that regard,

He also said he has been receiving from a very high-level signs lately that maybe Turkey would like to raise the idea of the electricity cable from Turkey to the north of Cyprus and then connect to the south. “I think the energy is shifting a bit, but so much depends on what happens in Israel”, he concluded.

In her intervention, Janet Shalom, Head of the International Relations and Foreign Policy Division at the Ministry of Energy and Infrastructure of Israel, focused on the role natural gas plays in the energy transition, noting that natural gas serves as the foundation that enables a safe, efficient and thoughtful transition to clean and renewable energy.

She added that natural gas has demonstrated how connectivity can be achieved, both within the region and beyond, and has facilitated the creation of critical infrastructure and organisations, such as the East Mediterranean Gas Forum, “one of the most significant energy platforms in our area”, as she noted, adding that natural gas infrastructure could be the base for new technologies like hydrogen.

“Experience shows that energy serves as a unique field, enabling cooperation and collaboration in being a physical and a metaphorical bridge between countries”, she concluded.

Asked to comment on whether there are indeed signs of change in terms of the Turkish stance, the Energy Minister said that the RoC as an independent country is prepared to have every conversation that makes sense for making the best use of the energy resources.

“If Turkey wants to be part of this group, they are very welcome, but they have to respect the rest of the countries and they have to respect international law”, he stressed, noting that energy is not just a matter of logistics and what makes sense in geography, but it needs to make sense on the geopolitics arena as well. “The respect of other countries in the neighbourhood is very important, it is a matter of trust”, he stressed.

Asked about the government’s plans in case the consortium does not process with the development of “Aphrodite”, the Minister said that the RoC has had a very productive conversation with the field operator, who, as he said, has provided a non-complete plan but it is heading to completion by mid-January.

“Given the new appetite coming not only from the operator’s side but the other discovery owners, we believe we will end up with something that is more conclusive and has a destination as well, which is to have Cypriot gas from Aphrodite to the market”, he noted in that regard.

Asked about Exxon’s plans on “Glaucus”, Ardill said the company will drill two wells, the first being on Block 5 in Cyprus’ EEZ, a large prospect called “Electra”, which, he said, has the potential to be a standalone development.

“With a a resource like that, if it is successful, it will need probably a couple of appraisal wells and a test to understand what we have got and we will move through that as quickly as possible”, he added.

He also said that the second well on Block 10 is called “Pegasus” and is very close to “Glaucus”, as is “Kronos” by ENI, adding that the two companies are working collectively to understand those resources as quickly as possible.

“When we get together a year from now, we will have those drilling results. We will have first to look at narrowing the development options, what is the optimal solution, and the shared target is to get as many of those molecules out the ground as we can at the lowest delivered development cost. Then we look at and compare the various facility options and the investments needed for those”, he noted.