Project
Economics
Understanding the economics of Cyprus gas projects helps assess their commercial viability. This page covers development costs, breakeven prices, and expected returns.
Development Cost Breakdown
Aphrodite (Egypt Pipeline Route — plan approved Feb 2025)
The approved development plan is estimated at around $4 billion (FPU, four initial production wells, export pipeline). Press reports additionally cite roughly $2 billion for the subsea pipeline to Port Said; the pipeline's financing structure has not been officially confirmed.
Cyprus FLNG (illustrative — no project has selected this option)
Updated July 2026 · Sources: MECI, operator announcements, press reports
Breakeven Gas Price
Breakeven price is the minimum gas sale price needed to achieve an acceptable return on investment (typically 10-15% IRR). Cyprus projects generally require $4-6/MMBtu, comfortably below typical European hub price levels.
| Project | Breakeven | Margin vs European Hub Prices |
|---|---|---|
| Aphrodite (Egypt route) | $4.0-4.5 | Strong |
| Cyprus FLNG (illustrative) | $5.0-6.0 | Good |
| EastMed Pipeline (dormant) | $6.0-7.0 | Marginal |
Operating Costs
Typical OPEX Components
- Lifting costs $1.0-1.5/MMBtu
- Transport/Processing $0.5-1.0/MMBtu
- LNG Liquefaction $1.5-2.0/MMBtu
- G&A, Insurance $0.3-0.5/MMBtu
Government Take
- Royalty 10%
- Profit Share (avg) 15-30%
- Corporate Tax 12.5%
- Total Government Take 50-60%
Regional Project Comparison
| Project | Country | CAPEX | Breakeven |
|---|---|---|---|
| Leviathan | Israel | $3.8B | $3.5-4.0 |
| Zohr | Egypt | $12B | $3.0-3.5 |
| Aphrodite | Cyprus | ~$4B | $4.0-4.5 |
| Karish | Israel | $1.7B | $4.0-4.5 |
Cyprus projects are competitive with regional peers. The Egypt pipeline option for Aphrodite offers economics comparable to successful Israeli developments.