Cypriots will likely go to the ballots this year to vote on whether they want to reunite their island after 41 years of division. A positive outcome could lead to deals to pipe both Cypriot and Israeli gas to Turkey.

There is growing hope on the small island in the eastern Mediterranean that 2016 could see a solution to the 41-year-old Cyprus problem following a recent positive rapprochement of the leaders of both the Greek Cypriot and Turkish Cypriot communities.

In the Greek controlled...