Jerusalem, 3 november, 2025 (TPS-IL) — Energean, the company operating several of Israel’s offshore gas fields, has signed a memorandum of understanding (MoU) with Cyprus-based Cyfield Group to supply natural gas to a planned power generation facility near Larnaca. The agreement, if approved by the governments of Cyprus and Israel, would make Cyprus the third country to import Israeli gas after Egypt and Jordan.
Under the proposed plan, Energean would finance, construct, and operate a new undersea pipeline connecting the Karish platform, 90 km off the Israeli coast, directly to Cyprus. The company did not specify the volume of gas to be transported, but analysts expect the project would need to generate hundreds of millions of dollars over several years to justify the investment. The pipeline, costing hundreds of millions of dollars, is intended to strengthen regional energy cooperation and develop a more competitive and interconnected gas market in the Eastern Mediterranean.
The project “will promote regional cooperation in the energy sector and contribute to the development of a competitive and interconnected gas market in the Eastern Mediterranean,” the Greece-based Energean said in a statement. According to the proposal, Energean will be responsible for the design, construction, and operation of the underwater gas pipeline, which will connect the Karish platform, operating in Israel’s economic waters, directly to Cyprus.
Israel’s Energy and Infrastructure Minister Eli Cohen welcomed the initiative: “Selling gas to Cyprus will strengthen Israel’s diplomatic standing in the region and among European countries, contribute to greater stability and prosperity in our area, and generate billions of shekels in revenue for the state. I intend to continue advancing the expansion of Israeli gas export targets,” Cohen said.
The pipeline would also diversify Cyprus’ sources of imported fuel. Cyfield Group CEO George Chrysochos added, “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.”
The large-scale Energean-Cyfield gas agreement requires Cypriot government approval, with authorities reviewing the MoU—particularly how it affects the state gas monopoly DEFA, which currently holds exclusive import rights.
The Karish gas field contains an estimated 3.5 trillion cubic feet (tcf) of natural gas. Gas production at Karish began in 2022. Although the gas is primarily used for domestic electricity generation, the field is also central to Israel’s export plans to neighboring countries. Israel exports natural gas to Egypt primarily from the Leviathan and Tamar offshore gas fields.
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