Cyprus is continuing its efforts to complete the first liquefied natural gas (LNG) import terminal in Vasilikos, despite geopolitical tensions and recent disruptions in global energy trade linked to the war in the Middle East, Energy Minister Michalis Damianos said.
In an interview with Platts, part of S&P Global Energy, the minister stressed that natural gas will remain essential to supporting the country’s electricity system even as renewable energy sources expand.
Natural gas as a transition fuel
Damianos said natural gas will act as a “bridge fuel” for Cyprus for decades.
“The natural gas will certainly be a bridge fuel and will remain in this role for perhaps three decades,” he said, adding that it could be two decades at minimum.
Government aims to restart stalled project
The Vasilikos LNG terminal project has faced significant delays and contractual disputes over the past decade, including the termination of the original agreement with a Chinese consortium.
According to the minister, the government aims to select a new contractor by the end of 2026 in order to complete the remaining works.
“The political decision is to complete the project, because we need natural gas and the fastest way for Cyprus to obtain it is to complete the terminal,” he said.
Energy isolation and infrastructure gaps
Damianos also highlighted Cyprus’ energy isolation, noting that it remains the only EU member state without an electricity interconnection to another country.
He said the Cyprus–Greece electricity link is not expected to be connected to the European grid before 2031.
According to International Energy Agency data, 85% of Cyprus’ energy consumption in 2023 came from imported oil and petroleum products, which also accounted for around 80% of electricity generation.
No priority for Israel–Cyprus pipeline
The minister clarified that a proposed private initiative for a natural gas pipeline between Israel and Cyprus is not a government priority.
“It is not something we are promoting at the moment,” he said.
He also defended the current role of DEFA as the sole importer and distributor of natural gas in Cyprus, stating that state control should be maintained for now.
Progress on “Kronos” and other fields
Damianos said a final investment decision for the “Kronos” gas field, developed by ENI and TotalEnergies, is expected by the end of June, with production potentially starting in the first half of 2028.
Gas from the field will be transported to Egypt for liquefaction at the Damietta LNG plant before being exported, mainly to Europe.
For the “Aphrodite” field, managed by Chevron, a final investment decision could be taken in summer 2027, with production expected in the early 2030s.
ExxonMobil’s Cyprus blocks are also expected to enter production later in the 2030s.
New licensing round planned
The government is also preparing a new hydrocarbons licensing round for 2027 or 2028, aiming to identify additional gas reserves that could strengthen Cyprus’ role in the Eastern Mediterranean energy sector.
Also read: Cyprus price levels reach 89% of EU average in 2025
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