Cyprus signs $1.8bn deal to develop first gas field, with exports to Europe via Egypt

On Monday Italian energy group Eni signed contracts worth up to $1. 8 billion (€1. 61 billion) to build the infrastructure needed to develop the Kronos natural gas field inside Cyprus's Exclusive Economic Zone (EEZ).

Eni's partner is French group Total, as the two companies will work together to mine the area. The project aims to commercialise Cypriot natural gas via Egypt, with exports to international markets and Europe expected to begin once production starts, which is currently scheduled for 2028. The agreements represent a major milestone in Cyprus's efforts to strengthen its position on the energy map of the Eastern Mediterranean, while also contributing to the diversification of Europe's natural gas supply sources.

The President of the Republic of Cyprus, Nikos Christodoulides, received an Eni delegation at the Presidential Palace, headed by the group's Chief Operating Officer of Global Natural Resources, Guido Brusco. This was followed by the contract-signing ceremony covering the design, equipment procurement, construction and installation of the infrastructure required for the development of the field. The president of Cyprus, Nikos Christodoulides, issued a written statement on the agreement, in which he says among other things that "The signing of contracts worth up to $1.

8 billion dollars for the development of the 'Kronos' field, and by extension the first commercial exploitation of Cypriot natural gas, constitutes a strong vote of confidence in our country's energy prospects, with particular geopolitical and economic significance. "In his speech, Brusco described the development as a historic milestone for Cyprus, as it is the country's first hydrocarbon field development project. More than 3 trillion Cubic feet of gasAccording to Brusco, the Kronos field holds estimated reserves of more than 3 trillion cubic feet (TCF) of natural gas, with production forecast to rise to as much as 500 million cubic feet per day once operations have stabilised.

The gas will be transported to Egypt, where it will be processed using existing infrastructure, including facilities linked to the Zohr field off the coast of Egypt. It will then be fed into the Damietta liquefied natural gas plant, from where it will be exported to international markets, chiefly in Europe. Using Egypt's existing infrastructure is a central pillar of the plan, as it enables the development of the field through regional energy partnerships and facilitates the commercial exploitation of the gas.

"Historic milestone for Cyprus"The Eni executive underlined that the company has been active in Cyprus since 2013, investing for more than a decade in expertise, human resources and technological infrastructure. He said the move of the Kronos project into the implementation phase is the result of this long-term effort and cooperation between the Republic of Cyprus, Egypt, Eni and TotalEnergies. "It is our first development project in Cyprus and confirms our commitment to being a long-term partner in the country's energy future," he noted.