Energean’s new proposal for an Israel–Cyprus natural gas pipeline is the most immediately feasible option for bringing gas to Cyprus, as it relies on established production in Israel and proven infrastructure, Energean CEO Mathios Rigas said in an interview with the Cyprus News Agency (CNA).
He noted that the project is entirely private, with an estimated cost of 350–400 million dollars, and can be completed within 12 months from the moment the necessary permits are issued. Its implementation, he said, now depends on a clear political decision to open the natural gas market, while also offering energy security, competition, more stable costs and a geopolitical upgrade for Cyprus in the Eastern Mediterranean.
“The Energean proposal is an absolutely realistic one, as Cyprus and its consumers will receive natural gas by connecting to a production base that has proven reliable, affordable and sustainable for more than three years, from a friendly country located nearby, and using infrastructure — the Energean Power FPSO — whose operation has been tested with complete success even under wartime conditions,” he said.
Rigas added that the project does not rely on future developments but on active production supported by two fields, Karish and Karish North, which supply around 50% of demand in Israel. From the first half of 2027, this production base will be further strengthened by the Katlan gas field.
He stressed that Energean’s proposal does not compete with Cyprus’ own energy plans but complements national projects, including the Vasilikos terminal, the FSRU and the monetisation of Cypriot offshore gas fields. For Cyprus to make full use of its geographic position and become an energy hub, he said, all these projects are needed. The wider region, he added, also needs every available energy source to meet rising demand and, if further discoveries are made, to supply European markets.
“The era of energy transition has evolved into an era of energy addition, and no project that can be financed by the markets, no piece of infrastructure, is redundant. And the markets, as shown by Energean’s three-billion-dollar investments in Israel, and our bond issuances are willing to invest in energy — as long as they are presented with realistic plans and reliable companies,” he said.
A matter of political decision-making
Asked why previous Energean proposals to Cyprus did not move forward, Rigas said the government had declared the natural gas market as “emerging,” thereby protecting the state monopoly of DEFA.
The company brought the Karish field into production in October 2022, within 4.5 years of acquiring it, despite the difficulties caused by the pandemic, he said. It laid the Karish pipeline connecting the Energean Power FPSO to Israel’s transmission system and drilled ten wells in waters about 1,800 metres deep, making additional discoveries such as Karish North and Katlan. This further strengthened the company’s technical expertise originally developed during production at the Prinos field in northern Greece.
Rigas expressed confidence that Energean’s technical capabilities are now well understood and reiterated that the Israel–Cyprus pipeline remains the project that can most quickly deliver gas to Cyprus.
“From the moment we receive the required permits, twelve months will be needed. And ultimately the issue is simple: it is a matter of political decision to open the natural gas market, after the opening of the electricity market. Especially since there is already an agreement between two private companies, meaning the source of supply and the customer are secured,” he said.
Estimated cost 350–400 million dollars
Asked about investment costs, Rigas said Cyprus would not pay anything for the project. “The construction cost for the roughly 200-kilometre pipeline has not been finalised, but it is estimated at around 350–400 million dollars,” he said.
It is a fully private project, and, according to Rigas, modelling by both Energean and Cyfield shows it is financially sustainable, while offering affordable prices for Cypriot consumers.
On how Cypriot consumers would be protected against future price fluctuations, Rigas pointed to the model Energean applies in Israel, which he said has proven its stability.
During the turmoil caused by Russia’s invasion of Ukraine, when gas prices in Europe climbed as high as 300 euros per megawatt-hour, Energean’s industrial clients and private power producers in Israel “consistently paid around 12 to 13 euros per megawatt-hour,” he said. He added that this difference directly affected competitiveness and the final cost of electricity.
He added that prices for Cyprus cannot yet be determined, as they will depend on the project’s final cost and technical parameters. However, he recalled that Energean’s gas price in Israel is significantly lower than TTF contracts, LNG and, the oil Cyprus currently uses for electricity generation.
“Consumers would also benefit from reduced CO₂ emissions through replacing oil with a cleaner fuel”, he said.
Benefits for Cyprus
Rigas pointed out that the pipeline is not only a commercial project but also of geopolitical value. Gas imports from Israel, he said, would strengthen Cyprus’ energy security by adding a new and complementary supply source, while introducing competition into the gas market.
He also said that replacing oil with natural gas would support cleaner electricity generation, stabilise energy costs and contribute to economic growth.
Beyond domestic benefits, Rigas said energy cooperation with Israel enhances Cyprus’ role in the Eastern Mediterranean and creates new energy corridors with future potential for bi-directional flow.
“Projects such as the natural gas pipeline from Israel confirm the strategic importance of Cyprus’ geographic position and help elevate the country into an energy centre in the wider Eastern Mediterranean region,” he said.
Cooperation with ExxonMobil and regional implications
Rigas also noted the strategic importance of Energean’s cooperation with ExxonMobil in the Ionian Sea. He said the world’s largest energy company has chosen to rely on Greek-developed expertise. ExxonMobil will acquire a 60% majority stake and cover the roughly 80 million dollars needed for the exploratory drilling, while Energean remains operator during the entire exploration phase.
He added that if a discovery is made, ExxonMobil will take over as operator during development, where investment requirements are far greater.
Rigas noted that ExxonMobil’s presence in Cyprus’ EEZ strengthens the 3+1 cooperation format among Cyprus, Greece, Israel and the United States, clearly reflecting the US interest in harnessing the region’s hydrocarbon potential. Such cooperation, he said, makes the development of domestic fields even more urgent, as they drive economic growth, build technical expertise, create jobs, lower prices and reinforce national sovereignty.
He concluded by saying that the discovery and development of domestic fields, combined with investments in infrastructure linking markets reliably and sustainably, is the only path “for our region to begin looking towards exporting hydrocarbons to European markets,” a development that would further elevate its role in today’s complex geopolitical landscape.
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