One of the cards that Greek Cypriots held a few years ago was that they had discovered natural gas off the coast of Cyprus, believing it was their gas to do with as they liked. This was at a time when gas, along with oil, prices were high. The problem with the whole project was that it had always been dependent on the expected returns but with oil falling towards $20 a barrel that has declined steeply.
With sanctions on Iran being removed, their return to a glutted oil market has exacerbated the situation. Although gas has not experienced such a large percentage fall, it is at its lowest for a long time. In effect, Cyprus gas production is not expected to lift off in the near future.
Compared to the impact on North Cyprus of water from Turkey, gas from South Cyprus is not going to be a major consideration during the Cyprus Problem negotiations. One thing there is not a glut of is water and by bringing it to Cyprus, Turkey has made unification more attractive to the south. That is if the north’s government can come to an agreement as to who is managing the water project.0 Likes