Turkey doesn't "hold sovereignty" in northern Cyprus. To use Ha'aretz term, it *occupies* it. And Israel owes no deference to Turkey's demands. Cyprus and Israel are on friendly terms, and are actively working together to exploit these new offshore gas finds. Israeli gas, funneled through Cyprus, can make its way to Greece for distribution to Europe. Turkey isn't needed. When a ship carrying Iranian arms blew up in a Cyprus harbor, destroying much of the country's electricity generating capacity, it was the Israel Electric Company that provided them massive generators to tide them over, not Turkey. Cyprus knows who their friends are.
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from the article: Turkey warns against Israel-Cyprus gas deal