Why is the gas being sent to Egypt instead of used in Cyprus?

Egypt possesses the only existing LNG export infrastructure in the region, making it the fastest and most cost-effective way to get Cypriot gas to global markets without the multi-billion dollar cost of building a new plant.

Which companies are involved in the Cronos project?

The project is operated by the Italian major Eni, which holds a 50% interest, in partnership with the French company TotalEnergies, which holds the remaining 50%.

When will Cyprus see the first gas from this project?

Following the award of these contracts and the expected investment decision in 2027, first gas is currently projected to flow between late 2028 and early 2029.

Rigzone · October 28, 2026 (10h ago) · 1 min read

Eni Awards Key Contracts for Cronos Gas Project

ENI S.p.A. Cronos

Isometric technical illustration of offshore oil and gas operations with drillship and support vessel — Illustration: ENI S.p.A.

Analysis

AI-assisted analysis · reviewed by Yuri Kan

Eni's award of major engineering and drilling contracts marks the definitive transition of the Cronos discovery from exploration to the development phase, positioning it as the first Cypriot gas field to reach this advanced stage. By securing procurement and drilling services, the Eni-led consortium is formalizing the subsea-to-shore tie-back strategy to Egypt's processing facilities. This move underscores the Eastern Mediterranean's role as a critical supply corridor for Europe's long-term energy security.

Key Facts

Eni, as operator of Block 6, has finalized the primary Engineering, Procurement, and Construction (EPC) contracts for the Cronos field development.
The development plan utilizes a subsea production system connected via a long-distance pipeline to existing infrastructure in Egypt.
Drilling contracts have been awarded to secure the specific offshore rigs required for the production wells needed to tap into the reservoir.
The project aims to leverage the Damietta or Idku LNG plants in Egypt to liquefy the gas for export to European markets.
The Cronos discovery is estimated to hold approximately 2.5 trillion cubic feet (Tcf) of natural gas in place.
This announcement follows the successful appraisal of the Cronos-2 well earlier in 2024, which confirmed the reservoir's commercial viability.

Background & Context

The Cronos discovery was first announced in August 2022 in Block 6, followed by a successful appraisal well in early 2024. For over a decade, Cyprus has struggled to monetize its offshore discoveries, including Aphrodite and Calypso, due to complex regional geopolitics and infrastructure gaps. The decision to utilize Egypt's underused LNG capacity emerged as the most capital-efficient route compared to building a standalone liquefaction plant on the island.

Market Impact

This development provides a massive boost to Cyprus's standing as an energy producer, finally moving the nation past the discovery-only phase into tangible project execution. For Eni and its partner TotalEnergies, it validates their aggressive exploration strategy in the Block 6 carbonate play. Egypt benefits by reinforcing its status as a regional energy hub, collecting transit and processing fees while utilizing its idle LNG capacity. European buyers will see this as a concrete step toward diversifying away from Russian gas with a reliable Mediterranean source.

What to Watch

With the main contracts now signed, the next major milestone will be the formal Final Investment Decision (FID), which is expected by early 2027. Construction of subsea infrastructure is likely to commence in mid-2027, targeting first gas production by late 2028 or early 2029. Stakeholders will also be watching for any potential unitization discussions if the reservoir is found to extend into neighboring blocks.

Why This Matters for Cyprus

This is a watershed moment for Cyprus as it represents the first concrete step toward actual gas production and export revenue. It proves that the Egypt-route is the preferred commercial solution for Eastern Mediterranean gas, potentially setting a precedent for the Aphrodite and Calypso fields.

Frequently Asked Questions

Why is the gas being sent to Egypt instead of used in Cyprus?: Egypt possesses the only existing LNG export infrastructure in the region, making it the fastest and most cost-effective way to get Cypriot gas to global markets without the multi-billion dollar cost of building a new plant.
Which companies are involved in the Cronos project?: The project is operated by the Italian major Eni, which holds a 50% interest, in partnership with the French company TotalEnergies, which holds the remaining 50%.
When will Cyprus see the first gas from this project?: Following the award of these contracts and the expected investment decision in 2027, first gas is currently projected to flow between late 2028 and early 2029.

Read on Rigzone