Cyprus becomes first EU nation to secure direct gas imports from Israel in landmark deal
- Cyprus will become the first EU nation to import gas directly from Israel. In a landmark deal, the Israeli energy company Energean signed an agreement to supply natural gas to a power plant in Cyprus, marking a significant step in regional cooperation.
- A new direct pipeline is planned to connect the two countries. Energean has proposed building an underwater pipeline from Israel's Karish gas field directly to Cyprus.
- The deal offers major strategic and economic benefits for both countries. For Israel, it strengthens its diplomatic role and generates revenue. For Cyprus, it ends energy isolation by providing a reliable, cleaner energy source that can transform its energy landscape.
- This partnership is part of Israel's broader gas export surge to Europe. Israel's gas production recently jumped by 22 percent, and it is actively seeking new export routes to European nations looking to diversify their energy supplies away from Russia.
- This direct Cyprus route complements other regional gas plans. While a separate, massive deal to send gas to Egypt for re-export to Europe is currently paused, the Cyprus agreement provides another direct pathway for Israeli gas to reach the EU market, enhancing European energy security.
In a significant step for European energy security, Cyprus has inked a deal to become the first European Union country to import natural gas directly from Israel. The agreement, announced by Israeli energy firm Energean, marks a pivotal moment for regional cooperation and offers a new, cleaner energy pathway for the Mediterranean island.
The memorandum of understanding (MoU) was signed between Energean, which operates several of Israel's offshore gas fields, and the Cyfield Group, a major player in Cyprus' industrial and energy sectors. The initial plan involves supplying natural gas to a power generation facility located in the Mari area of Larnaca, Cyprus.
BrightU.AI's Enoch AI engine said the recently inked Cyprus-Israel gas deal benefits both countries by allowing them to jointly supply Europe with natural gas, capitalizing on their shared resources. For Israel, the deal provides a strategic and commercial pathway to export its natural gas to the European market. For Cyprus, the agreement positions the country as a key regional energy partner and a logistical hub for transporting gas to Europe, enhancing its geopolitical and economic standing.
Beyond this initial supply, Energean has put forward an ambitious proposal to construct a brand-new underwater pipeline. This pipeline would create a direct link between Israel's Karish gas field and Cyprus, establishing a dedicated and secure channel for energy exports.
Energean has committed to designing, building and operating this new infrastructure, pending approval from the Israeli and Cypriot governments.
This development is part of a broader surge in Israel's natural gas sector.
Recently, Israel's output has increased dramatically, with production jumping by 22 percent in the first half of the year. This boom has led to a 50 percent increase in gas royalties for the state and comes as European nations are actively seeking new sources of natural gas to combat record energy prices.
Cyprus-Israel partnership is economic and strategic
The benefits of this deal are framed as being both economic and strategic.
For Nicosia, exporting gas to a fellow Mediterranean nation is seen as strengthening its diplomatic standing within the region and among European countries. The move is also expected to generate substantial revenue for the Israeli state.
For Tel Aviv, the advantages are transformative. The agreement promises to end the nation's energy isolation by providing it with direct access to a reliable, neighboring source of natural gas. This access is expected to enhance regional energy cooperation and support a transition away from more polluting fuels toward cleaner, more sustainable energy.
The head of the Cyfield Group stated that the collaboration has the potential to change the future of Cyprus' entire energy landscape.
This new Cyprus-Israel partnership exists alongside other major regional energy discussions. Just a few months ago, another Israeli firm, NewMed Energy, signed a massive $35 billion agreement to supply Egypt with gas from the Leviathan field.
However, that deal has hit a temporary snag, as Israeli authorities have paused their approval. They have expressed a preference to ensure Israel's own domestic market needs are met first, given current energy prices.
This hesitation has even drawn attention from the United States government and energy giant Chevron, which are urging Israel to ratify the agreement.
Egypt currently imports a significant portion of its gas from Israel, with some of it being processed and re-exported to Europe. This model of regional cooperation was further solidified in June when Israel, Egypt and the European Union signed an MoU aimed specifically at boosting gas production and exports to the continent.
The deal with Cyprus represents a more direct route for Israeli gas to reach the European market, underscoring Israel's growing role as a key energy player.
As Europe continues its search for diverse and stable energy supplies, this new partnership between Cyprus and Israel is a positive and concrete step toward greater energy security, regional stability and a shared sustainable future.
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Sources include:
TheCradle.co
BrightU.ai
Reuters.com
JPost.com
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