Cyprus’ Minister of Energy, Commerce and Industry, Michalis Damianos, has said that Cyprus is entering “a new phase of development” in the energy sector, underlining the country’s growing role in regional energy security, cooperation with the United States and the Eastern Mediterranean’s contribution to Europe’s energy diversification.

Speaking on Tuesday, during the PSEKA (International Coordinating Committee Justice for Cyprus) Conference in Washington DC, Damianos referred to his participation in the Atlantic Council forum, the 10th Ministerial Meeting of the Eastern Mediterranean Gas Forum and the “3+1 discussions” in Washington, stressing that these gatherings “highlight the growing importance of cooperation, dialogue, and strategic partnerships in shaping the future of energy".

The Minister presented Cyprus’ progress in hydrocarbons exploration, noting that since 2011 “eleven exploration wells and four appraiser wells have been drilled” within the Republic of Cyprus’ Exclusive Economic Zone, leading to “six significant natural gas discoveries.” He referred to Aphrodite in Block 12, Cronos, Euclid and Calypso in Block 6, as well as Glaucus and Pegasus in Block 10, saying that the combined discoveries are estimated at approximately “20 ESF,” representing “a significant natural gas resource of strategic importance for Cyprus, the Eastern Mediterranean region, and for Europe".

Damianos stressed that these developments come at “a particularly important time,” as Cyprus holds the Presidency of the Council of the European Union during the first half of 2026, placing “energy security, competitiveness, and a green transition at the heart of the European agenda".

Referring to the Aphrodite project, he said that the first exploration licence awarded to Noble Energy in 2008 marked “the beginning of American involvement in Cyprus’ hydrocarbons exploration” and led to the discovery of Cyprus’ first significant offshore natural gas field. 

Chevron, together with its partners, is now advancing the development of Aphrodite, he said. According to the Minister, the project is based on the commercialization of natural gas through a production unit within Cyprus’ EEZ and its transportation by subsea pipeline to Egypt.

Damianos noted that a Memorandum of Understanding signed by Cyprus, Egypt and the licence holders in February 2025 “established the framework for implementation,” while further commercial agreements, including a host government agreement and a gas sales purchase agreement, were initiated in March 2026 in Cairo. Production from Aphrodite is expected in 2030-2031, following the final investment decision. He said the project demonstrates how “international partnerships can transform energy resources into tangible economic and strategic benefits,” while contributing to “regional stability and energy diversification.”

The Minister also highlighted ExxonMobil’s presence in Cyprus’ EEZ as “another important pillar of Cyprus-US energy cooperation.” He said the ExxonMobil and Qatar Energy consortium has achieved two major discoveries, Glaucus in 2019, estimated at “4.8 TCF,” and Pegasus in 2025, estimated at “2.1 TCF.” Both were officially declared commercial discoveries on 3 March 2026, while development options are currently under evaluation.

On Block 6, Minister Damianos referred to “significant progress” by the ENI and TotalEnergies consortium, noting that the Cronos discovery, announced in 2022, contains approximately “3.1 TCF” He said that on 19 May 2026 the Council of Ministers approved the development and production plan for Cronos, as well as the relevant agreements for its implementation. Under the approved plan, gas will be transported to Egypt, processed and then sent for LNG production and export, “primarily to European markets.”

“These developments demonstrate the substantial potential of Cyprus’ natural gas resources and the value of partnerships with leading American energy companies,” Damianos said, adding that Cyprus-US cooperation can create “high-quality jobs,” attract “responsible project capital” and enhance Europe’s energy resources, while maintaining “strong environmental and geopolitical safeguards.”

He emphasized that cooperation with the United States “extends well beyond pipelines.” He referred to the 3+1 partnership between Cyprus, Greece, Israel and the United States, saying it promotes cooperation “at both political and technical levels in support of peace, stability and security in the Eastern Mediterranean.” He also described the Eastern Mediterranean Gas Forum as “an important platform for coordination among producing, consuming and transiting countries,” adding that Cyprus remains committed to “a market-orientated and cooperative approach to natural gas development.”

Damianos also referred to the modernization of Cyprus’ domestic energy market, saying that the introduction of a competitive electricity market in April 2025 marked “a major milestone.” He noted that Cyprus, as “an isolated island system with a rapidly growing share of renewable energy,” faces challenges including the need for energy storage, grid flexibility, interconnections and solutions to address renewable energy potential.

In this context, he highlighted the Eastern Mediterranean Energy Center, to be launched in Houston, describing it as an initiative of particular importance. Through its pillars of “R&D and academic partnerships, business-to-business engagement and collaborative learning on energy systems,” he said the Center can help address key bottlenecks and accelerate practical solutions.

He added that Cyprus supports the “3+1 Renewable Energy Works Improvement Initiative” proposed by the United States, through which Cyprus, Greece, Israel and the United States cooperate on clean energy technologies, innovation and policies aimed at reducing emissions and strengthening energy security.

The Minister said the government’s energy and industrial policy is guided by three objectives: reducing operational costs through energy efficiency, enhancing productivity and competitiveness through digital transformation, and expediting the green transition through circular economy actions and sustainable practices.

“Cyprus and the United States maintain a strong partnership based on common values, mutual trust and a shared commitment to stability, prosperity and regional cooperation,” he said, adding that the Republic of Cyprus remains committed to “responsible, transparent and forward-looking energy policies.”

Cyprus’ Ambassador to the United States, Evangelos Savva, described Cyprus as a “lynchpin” and a key partner in its region, saying that the bilateral relationship with Washington has undergone “a sea change” over the past decade. He said Cyprus is no longer seen by the United States “as a problem” or “as an issue that was a headache,” but rather “as a partner in a very critical strategic space".

Ambassador Savva pointed to the 6 November 2018 statement of intent signed in Washington between Cyprus and the United States on security and defence cooperation, calling it “the real landmark in the relationship.” He said this changed how Washington viewed the Republic of Cyprus, including in areas such as evacuations of non-combatants, energy security and wider regional policy.

He also referred to the East Med Act of 2019, the strategic dialogue, the defence dialogue and the energy dialogue with the United States, saying that all these developments are “absolutely crucial” for the bilateral relationship. He added that the inauguration of the East Med Energy Center in Houston was possible because of the East Med Act and the broader transformation in US engagement.

Savva stressed that strengthening Cyprus as “a reliable and credible partner and ally of the United States” also serves the objective of reaching the right solution to the Cyprus problem. “By making ourselves indispensable to US interests,” he said, Cyprus will be in a stronger position when the time comes for negotiations, so that it will not be pressured to accept “the continuation of troops” or “the continuation of guarantees.”

Greece’s Ambassador to the United States Antonis Alexandridis said Cyprus remains “a question of international law,” “a question of justice” and “a question of sovereignty.” He noted that for 52 years the Republic of Cyprus, “a member state of the European Union,” has stood partly occupied by a foreign military force.

Alexandridis described Nicosia as “the only and last divided capital of our Union,” adding that "I can only make a simple and very straightforward declaration, a solemn declaration, that we have been always, currently, and will always be, to your support”.

At the same time, the Greek Ambassador said the occasion was also a moment “to celebrate,” pointing to Cyprus’ “vibrant democracy,” “booming economy” and role as “a hub of energy.” He also referred to Cyprus’ humanitarian role, citing the Amalthea initiative for Gaza, and said that with new projects, the GSI, the 3-plus-1 framework and future cooperation, “the future can only be better".

 

CNA/GGA/MK/2026

ENDS, CYPRUS NEWS AGENCY