Hungarian government officials signed an agreement with their Cyprus counterparts regarding natural gas supply. With this move Hungary is aiming to diversify its supply routes and boost the country’s energy security. The two countries also intend to cooperate on water management technologies in order to improve Cyprus’s water supply.
At present, Hungarian gas supply fundamentally comes from Russia. Having signed the agreement, Hungary is trying to enable Cypriot gas to play a crucial role in the long-term energy supply of Southeast and Central Europe.
Cyprus’s oil and gas sector continues to record growth. Recent discoveries within Cyprus EEZ paired with a considerable discovery of the Zohr gas field in Egyptian territorial waters (close to Cypriot acreages) attracted a significant amount of international attention. There are currently 8 licences to exploit gas with the Cypriot Government in continuous discussions regarding the addition of new capacities and infrastructural maintenance. At present, the Cypriot gas sector is involved with Italian based ENI, French Total, US based ExxonMobil and Qatar Petroleum. In February 2018, a consortium of ENI and Total announced a preliminary natural gas discovery estimated between 4.8 and 8.1 Tcf.
It is also important to note that the country is exploring options for a liquefaction facility that would enable an alternative route for Cypriot gas exports.
Source: NY Times, Deloitte