Cyprus is pressing to turn offshore gas discoveries into a strategic energy asset, with President Nikos Christodoulides calling for the accelerated development of the Pegasus and Glaucus fields during a meeting in New York with ExxonMobil vice president for global exploration John Ardill.
According to government spokesman Konstantinos Letymbiotis, the discussion took place on the sidelines of the United Nations General Assembly and focused on the next phase for the two fields, in which ExxonMobil holds development rights alongside QatarEnergy.
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From Discovery To Development
Christodoulides welcomed ExxonMobil’s continued presence in Cyprus’ exclusive economic zone and said the declaration of the two fields as commercially viable marked an important milestone. In his view, that step has created the conditions needed to move decisively into development planning.
He called for the existing momentum to be maintained and for the evaluation of development options to be accelerated, to submit a development and production plan as soon as possible. That, Letymbiotis said, would allow ExxonMobil and QatarEnergy to advance the procedures needed to reach a final investment decision.
The president also underlined that the exploitation of domestic natural gas reserves remains a central pillar of Cyprus’ energy strategy. Beyond its domestic value, he said, development of these resources could strengthen Cyprus’ standing in the eastern Mediterranean while supporting Europe’s efforts to improve energy security and diversify supply routes.
Christodoulides further stressed Cyprus’ commitment to close cooperation with ExxonMobil, describing the company as an important long-term partner capable of helping translate exploration success into concrete production projects.
What Happens Next
ExxonMobil and QatarEnergy declared Pegasus and Glaucus marketable at the end of June, following years of exploration work in Block 10 of Cyprus’ EEZ. Ardill said at the time that the announcement represented the culmination of eight years of effort, beginning with the award of the blocks in 2017 and the first discovery in 2019.
He said the project would now move into additional drilling, followed by the initial engineering and design phase. The next major milestone would be the final investment decision, which ExxonMobil expects in 2029. If that timeline holds, production could begin in 2033.
“We are committed to 2033, but we hope to move faster,” Ardill said.
Export Options Under Review
Ardill said ExxonMobil is assessing several possible routes to bring the gas to market, including an onshore liquefaction facility in Cyprus connected by pipeline to Egypt, the use of existing liquefied natural gas infrastructure in Egypt, or a floating LNG solution.
He noted that floating LNG tends to be more expensive, while onshore LNG facilities generally require larger reserves than have been identified so far. For that reason, he said, the most likely option appears to be a pipeline connection to Egypt, given the existing framework of cooperation between Nicosia and Cairo.
That approach would align with broader regional energy plans already taking shape. Cyprus and Egypt, together with the TotalEnergies and Eni consortium in Block 6, have already signed agreements that could eventually see Cypriot gas transported to the Segas LNG terminal in Damietta for export to Europe and other markets.
For Cyprus, the next phase is now clear: move from geological promise to commercial execution. The broader significance is equally evident. If developed successfully, the country’s offshore gas could do more than bolster its own energy position. It could also deepen its role as a regional energy partner at a time when Europe is still seeking reliable, diversified sources of supply.
