The discovery of a natural gas reservoir at the Pegasus-1 site offshore Cyprus is “encouraging”, the energy minister said on Tuesday, a day after the government announced that drilling had detected a 350-metre gas column.

Speaking to media after a meeting of the cabinet at the presidential palace, George Papanastasiou sought to put a positive spin on the discovery, while at the same time conceding that the previous day’s announcement was short on details.

The minister explained that the longer a gas column is, “the likelier the reservoir is to be marketable” – meaning the quantities are sufficient for commercialisation.

Compared to the Glaucus-1 well – where the gas column measured 133 metres – the Pegasus reservoir is much deeper.

“It’s an optimistic sign, because the gas column [at Pegasus] is quite tall,” Papanastasiou said.

Regarding ExxonMobil – the operators of Block 10 where the Pegasus well was drilled – the minister said that in the coming weeks the company would assess the data from the drill before making a preliminary assessment of the quantity of gas in place.

Staying with the positive messaging, Papanastasiou suggested that one more gas discovery would add to the pool of verified gas finds “so that the quantities become marketable and financially viable, so that we can continue dynamically with making use of this wealth that lies inside Cyprus’ exclusive economic zone”.

But ultimately it is up to the energy companies to decide how to make use of the gas, he clarified.

“We [Cyprus] have already signed host government agreements with Egypt,” the minister recalled.

He was alluding to deals signed between Cyprus and Egypt in February for the re-export and commercialisation of Cyprus gas discovered at Aphrodite (Block 12) and Kronos (Block 6).

Under the memorandum of understanding, the gas would be transported to Egyptian liquefaction facilities at Idku and Damietta before being exported as liquefied natural gas.

Assuming the Pegasus site does contain commercial quantities, it could be exploited as a standalone reservoir, piping the gas to Egypt, where it would be liquefied at facilities for re-export; alternatively, a floating liquefied natural gas (Flng) unit might be placed atop the well, obviating the need for a pipeline.

Another possibility might be synergies between Pegasus and Glaucus with other gas reservoirs discovered by other companies in Cyprus’ exclusive economic zone.