ExxonMobil eyes 2033 for Cyprus gas flow via Egypt

Key facts

• ExxonMobil and QatarEnergy declared two Cyprus gas discoveries, Glaucus and Pegasus, commercially viable.
• Gas production from these fields is projected to start by 2033.
• The preferred export route is via pipeline to Egypt for liquefaction.
• The fields are estimated to contain over 7 trillion cubic feet of gas.
• Additional drilling at the Pegasus deposit is scheduled for year-end.

Natural gas from ExxonMobil discoveries off Cyprus may begin flowing by 2033, potentially utilizing Egypt as an export hub, according to John Ardill, ExxonMobil's vice president of global exploration. The energy giant, along with partner QatarEnergy, has officially declared two offshore gas fields, Glaucus and Pegasus, as commercially viable after signing a "declaration of marketability" with Cyprus.

These fields, located in Block 10 of Cyprus's exclusive economic zone, are estimated to hold over 7 trillion cubic feet of gas. Ardill indicated that the most likely route to market involves piping the gas to Egypt for liquefaction and subsequent export, citing the high cost of developing onshore facilities in Cyprus or a floating processing unit.

Cypriot President Nikos Christodoulides hailed the agreement as a significant step in establishing the Eastern Mediterranean as a crucial alternative energy corridor for Europe, particularly as the EU seeks to diversify its energy sources away from Russia. Qatar's energy minister, Saad Sherida Al-Kaabi, also emphasized the deal's role in advancing offshore resource development and regional energy cooperation.

ExxonMobil plans further drilling at the Pegasus deposit by the end of the year to gather more data for development. The company also expressed interest in exploring additional blocks within Cyprus's economic zone.