Greek energy exploration and production company Energean plc (LSE: ENOG; TASE: ENOG), which operates Israel’s offshore Karish, Tanin and Katlan gas fields, has signed a memorandum of understanding (MoU) with Cypriot company Cyfield, to supply natural gas to a electricity production plant that the company will build near Larnaca. If the project will be approved by the Cypriot government, Cyprus will become the third country to import natural gas from Israel after Egypt and Jordan.
Energean will finance and build a new underwater pipeline that will connect the Karish platform to Cyprus, at a cost of hundreds of millions of dollars. At this stage, the company declines to specify the quantities and scale, but it is clear that to justify the investment, the expected from the project will have to reach at least hundreds of millions of dollars over the years.
The company’s announcement said, “Energean has proposed to the governments of Cyprus and Israel to export natural gas from Israel to Cyprus via a new gas pipeline, a project with many benefits for both markets, which will promote regional cooperation in the energy sector and contribute to the development of a competitive and interconnected gas market in the Eastern Mediterranean. According to the proposal, Energean will be responsible for the design, construction, and operation of a new underwater gas pipeline owned by the company, which will connect the Karish platform, operating in Israel’s economic waters, directly to Cyprus.” The pipeline will connect directly from the Karish platform to Cyprus, without first passing through Israel.
Government monopoly
Since this is a large-scale infrastructure project, the agreement requires the approval of the Cypriot government. According to media reports in Cyprus, the Cypriot Ministry of Energy is examining the memorandum of understanding signed between Energean and Cyfield, and its official response will be forthcoming. One of the main issues being examined is the status of the state gas monopoly DEFA, which holds exclusive rights to import gas into the country, while Cypriot energy company Cyfield is interested in importing it directly.
Israel’s Minister of Energy and Infrastructure Eli Cohen has already welcomed the proposal. He said, “Israeli gas is a tremendous strategic asset for the State of Israel. Selling gas to Cyprus will strengthen Israel’s political position in the region in general and vis-à-vis European countries, will help increase stability and prosperity in our region, and will bring billions of shekels to the country. I intend to continue working to expand export destinations for Israeli gas.”
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Energean CEO Mathios Rigas added, “Promoting the flow of natural gas to Cyprus is a significant step for the benefit of the economy and consumers. Our proposal provides a practical and effective solution to reduce Cyprus’ energy isolation, through direct access to natural gas from a neighboring source.”
Cyfield Group CEO George Chrysochos said, “The collaboration with Energean has the potential to change the future of Cyprus’ energy. We look forward to working closely with the Cypriot and Israeli authorities to bring this important project to fruition, subject to all necessary approvals.”
Published by Globes, Israel business news – en.globes.co.il – on November 2, 2025.
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