Eastern Mediterranean Hydrocarbons

The report examines the discovery of natural gas in the Eastern Mediterranean, focusing on the competing claims of the Republic of Cyprus, Turkey, and Turkish Cypriots. It analyzes the commercial viability of export options—such as LNG plants and pipelines to Turkey or Europe—against a backdrop of falling global gas prices due to the US shale revolution. The text argues that while hydrocarbons offer a potential 'win-win' for regional stability, their development is currently hostage to long-standing political conflicts, particularly the Cyprus problem and strained Israeli-Turkish relations. It also explores the specific challenges facing Lebanon in becoming a gas province and the role of global energy governance and major players like Russia and the EU in shaping the region's energy future.

• The Republic of Cyprus claims sovereign rights to explore and exploit resources in its exclusive economic zone (EEZ) based on the UN Convention on the Law of the Sea, while Turkish Cypriots argue that resources belong to all Cypriots and should be jointly explored.
• Turkey opposes the Republic of Cyprus's EEZ agreements with Egypt and claims that certain blocks in the west (1, 4, 5, 6, and 7) overlap with its own continental shelf, threatening to take 'all necessary measures' to prevent unauthorized exploration there.
• The 'shale gas revolution' in the US has lowered global spot prices for liquefied natural gas (LNG), raising the commercial threshold for the viability of a Cypriot LNG plant; current estimates for Block 12 (approx. 5 tcf) may be insufficient for a viable plant.
• Lebanon's potential to become a gas province is hindered more by 'above ground' issues—such as political instability, lack of a final investment framework, and a fragile political system—than by technological or resource constraints.
• Russia's actual involvement in Eastern Mediterranean hydrocarbon exploration is described as 'miniscule,' with the author arguing that Moscow is fundamentally uninterested in new gas supplies in this region to protect Gazprom's dominance in the European market.
• Turkey's high dependence on energy imports (92% for oil and 98% for natural gas) creates a strong economic incentive to diversify sources, yet the prospect of East Mediterranean gas is unlikely to motivate Turkey to solve the Cyprus problem.
• The European Union's demand for gas diversification, particularly through the Southern Gas Corridor (including TANAP and TAP), creates a market opportunity for Eastern Mediterranean gas, though the current volumes from the region are not yet a 'game changer' for EU energy security.
• A pipeline from Cyprus to Turkey is estimated to cost less than $1 billion, which is significantly cheaper than a land-based LNG plant (estimated at $5-6 billion), though it is politically unfeasible without a resolution to the Cyprus dispute.
• The Republic of Cyprus's 2013 financial crisis and subsequent bail-out have weakened its bargaining position with international energy companies and limited its ability to finance infrastructure locally.
• High-value natural resources in post-conflict environments can either reinforce peace-building or jeopardize it through corruption, patronage, and the financing of violent disputes.

APA

Peace Research Institute Oslo (n.d.). Eastern Mediterranean Hydrocarbons. https://cdn.cloud.prio.org/files/fdc0ad66-58f0-4a3e-abf6-7479b1fa177f/East Mediterranean Hydrocarbons PRIO Cyprus Centre Report.pdf?inline=true

Chicago

Peace Research Institute Oslo. Eastern Mediterranean Hydrocarbons. n.d. https://cdn.cloud.prio.org/files/fdc0ad66-58f0-4a3e-abf6-7479b1fa177f/East Mediterranean Hydrocarbons PRIO Cyprus Centre Report.pdf?inline=true.

Wikipedia

{{cite report |author=Peace Research Institute Oslo |title=Eastern Mediterranean Hydrocarbons |url=https://cdn.cloud.prio.org/files/fdc0ad66-58f0-4a3e-abf6-7479b1fa177f/East Mediterranean Hydrocarbons PRIO Cyprus Centre Report.pdf?inline=true |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{peaceresearchinstituteoslondeastern, author = {{Peace Research Institute Oslo}}, title = {{Eastern Mediterranean Hydrocarbons}}, institution = {Peace Research Institute Oslo}, url = {https://cdn.cloud.prio.org/files/fdc0ad66-58f0-4a3e-abf6-7479b1fa177f/East Mediterranean Hydrocarbons PRIO Cyprus Centre Report.pdf?inline=true}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }