First natural gas now estimated to hit market in 2029-30

A final investment decision by the companies holding the Aphrodite gas concession may be taken early next year, with the first natural gas going to market by 2029 or 2030, the energy minister said on Tuesday.

Regarding the Aphrodite reservoir – located in Block 12 of the exclusive economic zone – minister Michael Damianos said the companies are proceeding with the Feed (Front-End Engineering Design) study.

A Feed is a crucial project planning phase conducted after feasibility studies to define technical requirements, risks, and costs before full investment.

The concession holders – Chevron, Shell and NewMed Energy – may take their final investment decision in January 2027, said Damianos.

“So potentially the first natural gas from Aphrodite will come two to three years after the final investment decision”.

Regarding the issue of Israel’s Ishai gas prospect, Damianos said it would not obstruct any commercial deals for Aphrodite.

A small part of Aphrodite extends into the Ishai field. The two countries are in talks aimed at reaching a unitisation agreement – effectively to compensate the owners on the Israeli side.

“It’s not necessary for there to be an agreement on Ishai for Chevron to go ahead with monetising Aphrodite,” said the minister.

“That is why we’re moving forward, although obviously if there were an agreement [with Israel] that would help.”

He expressed confidence that an agreement on Ishai could be struck up in the “next few weeks or months”.

On the Kronos gas play, located in Block 6, the schedule remains the same.

Here, Damianos said the government is “wrapping up” certain key issues with the energy companies.

In this regard, he recalled, he as well as President Nikos Christodoulides met the chief executives of Total and ENI.

On Monday, the governments of Cyprus and Egypt signed in Cairo a ‘framework agreement’ for the commercial development of natural gas.

The non-binding agreement essentially reaffirms a prior one signed by the two countries.

Asked about this, Damianos said it is an important component of Cyprus’ energy plans.

“That is, that the Aphrodite gas will go to Egypt for liquefaction and later sold on the Egyptian market, and that the Kronos gas will likewise be liquefied in Egypt and subsequently sold on European markets.”