Cyprus minister hails moves to connect island, Israel to European electricity grid

Cyprus's energy minister welcomed French firm Meridiam as a backer for the Great Seas Interconnector, a cable linking Europe's grid with Cyprus and Israel. The project faces cost uncertainties, with a European Investment Bank report expected soon. Cyprus consumers may cover up to 63% of construction costs, raising electricity prices. The EU has committed $760 million. Natural gas from the Cronos field could reach Europe by March 2028.

Cyprus's energy minister, Michael Damianos, welcomed French investment company Meridiam as a backer for the Great Seas Interconnector, an electricity cable that will link Europe's power grid with Cyprus and eventually Israel. The project aims to end the energy isolation of both Cyprus and Israel and support a new energy and trade route to the Gulf and India pursued by the European Union. However, the project is entangled in red tape over its real cost, which exceeds an earlier estimate of $2.2 billion. A European Investment Bank report due in the next few months will clarify the cost. This is critical for Cyprus because, under an existing agreement, Cypriot energy consumers would have to cover up to 63% of the cable's construction cost, leading to a significant jump in electricity prices. Additional private investment is being sought to offset this burden, and additional EU funding is under consideration. The EU has already committed $760 million (658 million euros) to the project. Damianos also said that European consumers can expect natural gas from an undersea deposit off Cyprus as early as March 2028. He explained that the East Mediterranean is becoming an alternative energy source for Europe due to Russia's war in Ukraine and Middle East upheaval. Partners TotalEnergies and Eni made a final decision last month to develop the Cronos gas field, the first to supply gas from east Mediterranean deposits to European markets. The pipeline from Cronos to Egypt's Zohr field will begin later this year and take up to 18 months. The gas will be liquefied at Damietta and shipped to Europe. The cost of piping Cronos gas to Egypt is roughly $2 billion, half the estimated cost of developing other fields. Cronos holds over 3 trillion cubic feet of gas, with about a fifth potentially used for Egypt's domestic needs. Damianos noted the reserve is small, but its importance lies in Cyprus becoming a producer. Cronos is one of six gas deposits discovered in Cyprus's Exclusive Economic Zone. Two others, Glaucus and Pegasus, hold an estimated 6.9 tcf, with ExxonMobil and QatarEnergy expecting gas to flow by 2033. ExxonMobil plans to expand exploration and may receive an additional license. Another field, Aphrodite, holds an estimated 5.6 tcf, with a final decision by a Chevron-led venture expected in summer 2027. Part of Aphrodite lies in Israeli waters, and an arbitrator may decide Israel's share by next month.