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BAKKEN WIRE
Global Chokepoints Disrupted as Cyprus Launches First Gas Project - Bakken Wire
Global Markets

Global Chokepoints Disrupted as Cyprus Launches First Gas Project

Houthi threats reroute Saudi crude via Egypt while Iran fortifies key terminal; Eastern Mediterranean gas gains momentum.

Bakken Wire Staff·☀️Morning Wire·

European majors Eni and TotalEnergies have taken a final investment decision to develop the Cronos gas field offshore Cyprus, the country's first hydrocarbon project, according to OilPrice.com. The field, holding over 3 trillion cubic feet of gas initially in place, is expected to produce first gas in 2028, reaching a plateau of around 500 million cubic feet per day. The gas will be processed in Egypt and exported as LNG to international markets, primarily Europe.

Meanwhile, heightened security threats in the Middle East are disrupting global crude shipping lanes. Following Houthi announcements of a blockade on Saudi shipments in the Red Sea last week, Saudi Arabia is rerouting crude exports, according to OilPrice.com. The kingdom is shuttling more crude via pipeline from the Red Sea port of Ain Sukhna to Egypt's Sidi Kerir port on the Mediterranean. At least eight very large crude carriers (VLCCs) are currently signaling Sidi Kerir as their destination.

Tanker traffic through the Bab el-Mandeb Strait slumped to a multi-month low on Sunday, while crossings at the Strait of Hormuz remain at a two-month low. The Houthi threats have already forced at least one oil tanker carrying Saudi crude to Asia to take the longer route around Africa's Cape of Good Hope.

Concurrently, Iran is accelerating infrastructure projects at its main oil export terminal on Kharg Island, which handles about 90% of its exports, OilPrice.com reported. The move comes amid persistent threats from the U.S. Administration. As of Sunday, 24 "dark" tankers, with transponders switched off, were in the waiting area near Kharg Island.

For Bakken operators, these developments highlight continued volatility in global shipping chokepoints, which can affect crude oil pricing differentials and market access. The launch of the Cypriot gas project, with Eni CEO Claudio Descalzi stating it will help diversify Europe's LNG supply sources, represents a longer-term shift in gas supply geography that could influence global energy balances.

Source

OilPrice.com (July 28, 2026)

global marketsshippinglnggeopoliticsmiddle eastmediterranean

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