Oil & Gas
For centuries, natural gas has been Cyprus’ hidden treasure. With the discovery of world-class deepwater natural gas reserves in Cyprus’ Exclusive Economic Zone (EEZ), estimated up to 60tcf, the island has attracted a lot of attention from potential international investors, while bringing new and exciting opportunities to the energy sector itself.
Furthermore, the discovery of natural offshore gas undoubtedly generates great prospects and tremendous opportunities regarding the economy of the island in general. To this end, the geostrategic and geoeconomic role of the Republic of Cyprus as an energy centre is definitely enhanced. Cyprus becomes a genuine future energy player with a great deal of potential. Consequently, new structures are being created in relation to the management of hydrocarbon reserves thereby generating the opportunities for the development of synergies with neighbouring countries.
In November 2014, the private €300m storage and distribution terminal in Cyprus opened for business. Its strategic location makes it the first terminal of its kind in the Eastern Mediterranean, connecting Europe and the Black Sea with markets in the Middle East and Asia. The asset currently comprises 28 tanks and capacity of 544,000 m³, and offers access to a deep water marine jetty as well as to road tanker loading facilities. A Phase 2 expansion is currently under evaluation and would create an additional 13 tanks and further capacity of 305,000 m³.
The Government of Cyprus is positive that Cyprus can become an important exporter of natural gas to the EU, as well as other international markets. Presently, exploration licenses have been granted to internationally renowned oil & gas companies and their partners for 8 offshore blocks within Cyprus’ EEZ, estimated to hold up to 1,400 bcm of natural gas. The Government of Cyprus is continuing its negotiations concerning the infrastructure requirements necessary for bringing the natural gas onshore for local consumption, as well as liquefaction for export into Europe and other markets.
In the next two years, any significant deposit discoveries will be key to determining Cyprus’ hydrocarbon potential – and which options will be considered as more viable for the exploitation of the findings (e.g. development of onshore or offshore LNG plant, pipelines connecting neighbour countries with other regions, etc).
As the region develops gradually into an energy hub, Cyprus is in a position to offer a base for companies offering ancillary services to the hydrocarbon industry and which can be active in neighbour countries.
For further information concerning the Energy sector of Cyprus please visit the websites of:
Renewable Energy Resources
In the past decade Cyprus has invested greatly in Renewable Energy Sources (RES) in order to comply with the targets set by the EU of reaching a minimum electricity capacity of 13% by 2020, through RES. The Ministry of Energy, Commerce, Industry & Tourism has set the government’s objectives on RES through the National Action Plan which is to reach a minimum electricity capacity of 584MW by 2020.
Cyprus’ experience with Renewable Energy goes back many years, as its one of the countries with the highest use of solar energy for water heating in households. In the years to come significant investment in RES projects is expected, in order to reach the capacity objectives set. The production of energy from RES in Cyprus is focused on technologies concerned with Solar Energy, Wind Energy, Biomass and Small hydro.
The most important RES projects are wind parks and photovoltaic (PV) parks, concentrated solar thermal plants and biomass and biogas utilisation plants. Six wind parks are currently in operation, while as regards solar energy, four PV parks have been connected to the national grid so far, generating 1,000,000 kWh.
For further information concerning Renewable Energy Sources in Cyprus please visit: