Philenews

Cyprus in the Energy and Geopolitical Chessboard of the Eastern Mediterranean

Published March 10, 2026, 17:13
Cyprus in the Energy and Geopolitical Chessboard of the Eastern Mediterranean

Despite significant offshore natural gas reserves, Cyprus continues to lag behind its regional partners in converting its potential into tangible energy power and influence. Unlike Egypt, which has established liquefaction capacity, or Israel, which has rapidly developed its offshore reserves and export capacity, Cyprus has failed to promote the commercialization of its natural gas. This is due to delays in implementing critical projects and Turkish naval power projection. The discovery of the 'Aphrodite' gas field in 2011 was seen as a major opportunity for Cyprus, but the unitization agreement with Israel remains pending. However, there is momentum towards a final settlement, with an agreement to appoint an Independent Verification Body. International oil companies (IOCs) are pushing for cost reduction and increased profitability, which is delaying the development of the fields. Cyprus needs to demonstrate project implementation capability to strengthen its negotiating power and establish itself as an energy hub in the Eastern Mediterranean. The geopolitical situation in the region and the challenges facing Cyprus require a strategic approach to exploiting its energy resources and enhancing its security.