Nicosia, Cyprus. Cabinet approved the development and production plan for the Kronos gas field in Block 6 of Cyprus’ Exclusive Economic Zone, with President Nikos Christodoulides highlighting the decision ahead of the meeting.
Cabinet approvals and gas sales plans
Christodoulides said the decision was the most important regarding natural gas exploitation since the first discovery in Cyprus’ Exclusive Economic Zone in 2011. He said cabinet would also approve agreements concerning the basic terms of sale of Cypriot natural gas, describing the move as important for the utilisation of the country’s energy resources.
He said the goal is to sell the first Cypriot natural gas to Europe through Egypt in 2028 and that all relevant agreements were being approved.
Consultations with Exxon and QatarEnergy blocks
Christodoulides said further announcements would follow soon in collaboration with Exxon, which jointly holds the rights to drill in Block 5 and Block 10 of Cyprus’ Exclusive Economic Zone with QatarEnergy. He said consultations were at an advanced stage and that specific next steps would be announced soon.
Pending investment decision and technical committee
The development and production plan was approved while a final investment decision from the consortium comprising Total and Eni over Block 6 remains pending, despite earlier expectations that it would have been reached.
In March, Energy Minister Michael Damianos agreed to create a joint technical committee to undertake negotiations on the terms of sale of natural gas. He said the committee would address the sale of natural gas to Egypt or to Egyptian state-owned companies, operate at a technical level, and examine both commercial and technical parameters.
Route through Egypt and Damietta LNG terminal
Given the proximity of the Kronos field and Block 6 to Egypt’s Zohr gas field, which Eni also operates, Eni will be able to use its infrastructure to take Cypriot natural gas to the Segas liquefied natural gas terminal in the Egyptian port city of Damietta and export the gas to Europe and, if required, elsewhere.
What do you think Cyprus’ approval of the Kronos plan means for its timeline to begin exporting natural gas to Europe?
