Energean plc has signed a Letter of Intent with the Cyfield Group to potentially supply natural gas to Cyfield's planned power plant in Mari, Larnaca, Cyprus. 

Reported on Monday, the agreement hinges on the development of a proposed undersea pipeline from Israel.

Energean has already submitted a proposal for the pipeline to both the Israeli and Cypriot governments. The pipeline would connect the Energean Power floating production and storage vessel, operating in Israeli waters, directly to Cyprus’s energy infrastructure.

The project, which requires governmental approval from both nations, is being framed as a pivotal step for regional energy integration. If approved, the pipeline would provide Cyprus with a new source of natural gas, enhancing its energy security and reducing its dependence on petroleum fuels. 

Officials said the project would also promote cleaner electricity generation, supporting Cyprus's decarbonization efforts and European Union climate goals, while potentially stabilizing energy costs.

Israeli Energy and Infrastructure Minister Eli Cohen called his country's natural gas a “strategic advantage.” He said selling gas to Cyprus would strengthen Israel’s international position and deliver “stability, prosperity and significant state revenues.”

Mathios Rigas, Energean's chief executive, also supported the proposal, saying that it “offers a practical and economically viable solution to Cyprus’s energy isolation, ” with Giorgos Chrysochos, Cyfield Group's chief executive, adding that the partnership “can transform Cyprus’s energy future.” 

According to Chrysochos, gas import from Israel would enable “cleaner and more efficient electricity generation,” leading to “reduced costs for consumers.”