Eastern Mediterranean Gas Discoveries Bolster Region's Energy Export Potential

Strategic Insights -

A consortium led by ExxonMobil, in partnership with Qatar Energy International, has made a second natural gas discovery beneath the seabed south of Cyprus, augmenting the region's potential as an energy exporter. This new find not only enhances Cyprus' capacity to become a significant energy player but also paves the way for a diversified energy supply for Europe, potentially reducing its dependence on Russian hydrocarbons. The gas discovery bolsters the budding energy partnership between Cyprus, Greece, and Israel, which could also see support from Washington and Brussels to develop a greater measure of critical energy independence for Europe's re-industrialization efforts.

Key Takeaways:

  • The ExxonMobil-Qatar Energy consortium has made a second natural gas discovery south of Cyprus, which is expected to bolster the region's potential as an energy exporter.
  • The Pegasus-1 well, discovered about 118 miles southwest of Cyprus at a depth of 6,302 feet of water, is the sixth natural gas deposit to be discovered inside Cyprus' economic zone in the last 14 years.
  • The well lies within the same block as the Glaucus-1 well, where a discovery was made in 2019 that is estimated to contain 3.7 trillion cubic feet of gas.
  • Other natural gas deposits inside Cyprus' economic zone include the Zeus, Cronos, and Calypso wells, with estimates of 2.5 trillion, 3.1 trillion, and unknown quantities of gas, respectively.
  • Agreements with Egypt foresee gas from the Cronos and Aphrodite fields to be sent to Egypt via a pipeline for either domestic use or to be processed at Egyptian facilities for export to Europe and other markets.
  • Cyprus' Energy Minister George Panastasiou has indicated that ExxonMobil, Eni, and Total could partner up to jointly develop their gas deposits found in proximity to each other.
  • The gas discoveries in the eastern Mediterranean could aid Europe in lessening its dependence on Russian hydrocarbons by diversifying its energy supply and potentially contributing to a greater measure of critical energy independence for Europe's re-industrialization efforts.

Statistics:

  • 3.7 trillion cubic feet of gas estimated to be contained in the Glaucus-1 well.
  • 3.1 trillion cubic feet of gas estimated to be contained in the Cronos well.
  • 2.5 trillion cubic feet of gas estimated to be contained in the Zeus well.
  • 6.302 feet of water depth of the Pegasus-1 well.
  • 118 miles southwest of Cyprus is the location of the Pegasus-1 well.
  • 14 years of exploration that has led to the sixth natural gas deposit discovery inside Cyprus' economic zone.
  • 5.6 trillion cubic feet of gas estimated to be contained in the Aphrodite field.
  • 2 trillion cubic feet of gas estimated to be contained in the Calypso well.

Sources:

  • The Associated Press, (no date provided), "A consortium made up of ExxonMobil and partner Qatar Energy International has made a second natural gas discovery beneath the seabed south of Cyprus, the government said Monday, a find that bolsters the region's potential as an energy exporter."
  • A statement from the Cypriot government via John Ardill, ExxonMobil's vice president, briefed Cypriot President Nikos Christodoulides about the discovery at the Pegasus-1 well during a teleconference.
  • A statement from the Cypriot government via Energy Minister George Panastasiou has indicated that ExxonMobil, Eni, and Total could partner up to jointly develop their gas deposits found in proximity to each other.