The landmark agreement comes Israel refuses to ratify a $35 billion deal to export gas to Egypt
Israeli energy firm Energean announced on 3 November a deal to supply natural gas to Cyprus, making it the first European country to receive gas exports from Tel Aviv.
Energean, which operates Israel’s natural gas reservoirs Karish, Tanin, and Katlan, signed a memorandum of understanding (MoU) with the Cyfield Group, a leading company in the Cypriot industrial and energy sectors, to provide gas for a power generation facility in the Mari area of Larnaca.
Energean also proposed constructing a new pipeline to export natural gas from Israel to Cyprus.
According to the proposal presented to the Israeli and Cypriot governments, Energean will design, construct, and operate a new undersea pipeline connecting Israel’s Karish gas field directly to Cyprus.
“Selling gas to Cyprus will strengthen Israel’s diplomatic standing in the region and among European countries, contribute to greater stability and prosperity in our area, and generate billions of shekels in revenue for the state,” Energy and Infrastructure Minister Eli Cohen stated.
Energean CEO Mathios Rigas said his company’s proposal would “reduce Cyprus’s energy isolation by providing direct access to natural gas from a neighboring source, thereby enhancing regional energy cooperation and supporting the transition to cleaner, more sustainable energy.”
“The collaboration with Energean has the potential to change the future of Cyprus’ energy,” added Cyfield Group CEO George Chrysocous.
In August, Israeli energy firm NewMed Energy signed a $35 billion agreement to supply Egypt with 130 billion cubic meters (bcm) of gas from the Leviathan field through 2040, in what it described as Israel’s largest export deal to date.
Leviathan, located off Israel’s Mediterranean coast, holds an estimated 600 bcm of reserves. The field began supplying Egypt shortly after production started in 2020, following an initial 2019 agreement to export 60 bcm.
However, Energy Minister Cohen and Prime Minister Benjamin Netanyahu have yet to approve the $35 billion agreement, saying they prefer to sell gas to Israel’s domestic market given current prices.
US Energy Secretary Chris Wright canceled his planned visit to Israel next week after Cohen refused to approve the agreement.
Both the White House and US energy giant Chevron, which operates the Leviathan gas field, are pressing Israel to ratify the agreement.
Egypt currently imports some 15-20 percent of its gas from Israel. Some of the gas is then liquefied and exported from Egyptian terminals to Europe via tankers. However, recent increases in domestic consumption have harmed gas exports, leading to a sharp decline in 2025.
Israel has been reluctant to export additional gas to Egypt due to concerns of its own over domestic needs. Israel’s Finance Ministry warned earlier this year that the country may face a natural gas shortage over the next 25 years as domestic energy needs grow, leading to higher electricity prices for consumers.
Article Source: TheCradle.co
