Key facts
- ExxonMobil and QatarEnergy have declared two undersea gas deposits in Cyprus commercially viable.
- Natural gas production from the Glaucus and Pegasus deposits is projected to begin by 2033.
- The consortium's preferred method for bringing the gas to market is via pipeline to Egypt for liquefaction and export.
- Additional drilling is planned for the Pegasus deposit by the end of the year.
- ExxonMobil is also interested in exploring a new block in Cyprus's exclusive economic zone.
Natural gas could begin flowing from two undersea deposits discovered by ExxonMobil off the coast of Cyprus by 2033, according to a senior company executive. The deposits, named Glaucus and Pegasus and located in Block 10 of Cyprus's exclusive economic zone, are estimated to hold approximately 7 trillion cubic feet of gas combined.
ExxonMobil and its partner QatarEnergy have signed a deal with Cyprus declaring these deposits commercially viable. John Ardill, ExxonMobil’s Vice President of Global Exploration, stated that the most probable method for bringing the gas to market would involve conveying it through a pipeline to existing processing facilities in Egypt, where it can be liquefied for export. Building onshore facilities in Cyprus or a floating processing unit are considered too costly at this stage.
Ardill expressed confidence in the government-to-government coordination between Cyprus and Egypt, which supports the concept of an East Mediterranean energy hub. He also indicated that the consortium is interested in expanding its exploration activities in Cyprus, particularly in an area adjacent to its current drilling licenses.
Further drilling at the Pegasus deposit is scheduled for the end of the year to gather more data for development. Cyprus has been aiming to establish itself as a new energy source for Europe since the initial discovery of natural gas in 2011.
Other energy companies also hold exploration licenses in Cyprus's EEZ. A consortium of Italy's Eni and France's TOTAL has licenses for four blocks containing an estimated 5.6 trillion cubic feet of gas. Additionally, a partnership including Chevron, Shell, and NewMed holds a license for a block with the Aphrodite discovery, estimated at 5.6 trillion cubic feet of gas. Eni previously indicated a decision on developing its Cronos gas field could be made soon, potentially supplying Europe by late 2027 or early 2028.