Keynote address by the Minister of Energy, Commerce and Industry of the Republic of Cyprus, Mr George Papanastasiou, at the Eastern Mediterranean Energy Conference and Exhibition (EMC 2025)

From:

Ministry of Energy, Commerce and Industry

20/10/25 12:01 | Speech / Address | Energy, Commerce and Industry

On behalf of the Republic of Cyprus, I warmly welcome you all to Lemesos for the third edition of the Eastern Mediterranean Energy Conference and Exhibition (EMC 2025), hosted each year in Cyprus.

Our island, dear friends, lies at the crossroads of the Eastern Mediterranean – a region that, as highlighted once again by recent events, is inherently volatile. Yet amid these challenges, Cyprus has demonstrated its enduring value as a pillar of stability – both as a sovereign state and as a member of the European Union (EU). In this context, we have facilitated the EU’s outreach in the region, offering safe refuge, humanitarian relief, and coordinated support to affected populations.

Recognising our unique geopolitical position, the Government is committed to maximising the enabling and value-adding role the country can play across key sectors – most notably in energy. Coordination at a regional level, to achieve common goals in the areas of Energy Transition and Energy Security, is of paramount importance and Cyprus continues to lead and support a number of bilateral and multilateral initiatives. The values and principles we share with regional partners, including respect for international and maritime laws, have fostered deeper consultation and collaboration.

Like our regional partners, as well as countries around the world, the Government is focused on achieving affordable, secure, and cleaner energy for all consumers – households and businesses. Our strategy is based on four key pillars:

1. Renewable Energy

We will continue to promote the penetration of renewable sources in the country’s energy mix, whilst also working to upgrade the electricity grid and invest in storage systems to ensure efficiency and stability.

2. LNG Import and Regasification

We remain steadfast in delivering the FSRU project, which is intended to be the cornerstone of conventional energy production on the island, ensuring reliable, affordable, and cleaner energy.

3. Regional Electrification

Connecting Cyprus’ electricity grid with those of Greece and Israel is a priority for the Government, as it will finally end our country’s energy isolation, enhancing security of supply, fostering competition between energy producers and providers, and creating opportunities for energy exports.

4. Exploitation of Cypriot Gas Reserves

With this fourth pillar being one of the focus areas of today’s event, allow me to expand further.

Cyprus has made great progress in its exploration efforts for natural gas, with six significant discoveries to date – Aphrodite, Calypso, Glaucus, Cronos, Zeus, and, most recently, Pegasus – and with more exploration to come. Monetisation efforts, in close partnership with our licenced block holders, are advancing and we are confident that Cyprus will soon become a natural gas producer. This will be a milestone that will enable the Republic of Cyprus to fulfil its role in unlocking cleaner energy for our region, Europe and beyond, while also delivering tangible benefits to the Cypriot economy.

We recognise, of course, the challenges inherent in monetising the region’s natural gas resources. Especially newer discoveries, being in deeper waters, require new infrastructure to bring gas to markets. Several monetisation options are currently under consideration, including the use of existing infrastructure in Egypt, as well as newly matured technologies such as Floating Liquefied Natural Gas (FLNG) and Modular LNG for onshore applications. The decisions we make now regarding infrastructure investments in Cyprus’ Exclusive Economic Zone (EEZ) will be critical, not only for our initial production goals, but also for supporting our long-term ambitions as a natural gas producer.

The fundamentals of natural gas and LNG remain robust and this speaks volumes about the role of natural gas in the energy transition as the least carbon emitting of the fossil fuels and as an enabler of greater renewable energy integration. Global LNG demand is expected to continue increasing over the coming decades, driven primarily by developing Asian economies – and the East Med region is well positioned to help meet that demand.

Focusing on our region’s energy transition, numerous initiatives are progressing. Even for natural gas, with its key role in the transition, emphasis is increasingly placed on ensuring as clean production as possible, by targeting Scope 1 and Scope 2 emissions.

In the near term, our initiatives for progressing the Cronos and Aphrodite discoveries are gaining traction. It is indeed a pleasure to be joined today by my friend, His Excellency Karim Badawi, Minister of Petroleum and Mineral Resources of the Arab Republic of Egypt. Earlier this year, in February, we signed important agreements, together with our license holders, defining the development concepts for both natural gas fields. The timely progress of these projects serves the mutual benefit of all parties and we are deeply grateful to the Arab Republic of Egypt for their ongoing cooperation.

Our teams and our licence holders have been working tirelessly since February and I would like to thank them all for their commitment. We are on track to finalise the Cronos development plan by the end of this year, paving the way for the licensees’ Final Investment Decision. Similarly, for Aphrodite, the licence holders are expected to complete their pre-FEED (Front-End Engineering Design) study and enter FEED within the same timeframe.

The Cypriot Government’s policy framework and decision-making regarding the exploitation of our Gas Resources is guided by four value drivers:

• Development Speed

• Creation of Cyprus EEZ Infrastructure

• Production

• Direct and Indirect Benefits for the Cyprus Economy

These drivers must be considered within the broader parameters of Value and Achievability. Our efforts to make progress on exploitation will be structured through alignment with our license holders and project partners to agree and deliver on common objectives.

At the same time, our focus on exploration also remains strong. I wish to once again thank and congratulate our Block 10 licence holders for the successful and safe execution of the Pegasus discovery well, announced in July this year. Continued exploration efforts by all our licence holders will further realise the hydrocarbon potential of Cyprus’ EEZ and thus enhance confidence in our exploitation strategy.

Dear friends, ladies and gentlemen,

The Eastern Mediterranean is evolving rapidly and the energy sector stands at the forefront of this transformation. Our region’s vast energy potential and strategic position make it a focal point for investors and entrepreneurs. Here at EMC 2025, you will witness the incredible momentum that is propelling our region into a new era of sustainable energy production. It is a place where innovation and opportunity are converging.

I encourage you all to make the most of your time here at EMC and seize the potential it offers: engage in meaningful dialogue, explore collaborations, and discover new solutions. This event is not only about the energy sector’s current state of play, but also about shaping its future.

I would like to commend the IES Group and the Cyprus Hydrocarbons Company for organising this important event, and to thank all participating companies for their support and contributions. I wish all speakers and delegates a fruitful and productive conference.

Thank you.

(GA/ΚΑ/GS)

Keynote address by the Minister of Energy, Commerce and Industry of the Republic of Cyprus, Mr George Papanastasiou, at the Eastern Mediterranean Energy Conference and Exhibition (EMC 2025)

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