Eni signs $1.8 billion in contracts for Cyprus gas project
Eni has signed construction contracts for infrastructure to extract gas from Cyprus’ Kronos field and send it to Egypt for liquefaction, with first sales hoped for in 2028.
Damietta, Egypt. Italian energy company Eni signed contracts on Monday valued at $1.8 billion to build infrastructure for extracting gas beneath the seabed at Cyprus’ Kronos field and transporting it to Egypt for liquefaction.
Egyptian infrastructure to support exports
Kronos lies within Block 6 in the exclusive economic zone of Cyprus. Rights to the block’s resources are held jointly by Eni and French energy company Total.
The nearby Egyptian Zohr field, also operated by Eni, will enable the company to use its existing infrastructure to transport Cypriot gas to the Segas liquefied natural gas (LNG) terminal in Damietta, an Egyptian port city. From there, the gas can be exported to Europe and other destinations if needed.
Egypt’s government received host-government status for Block 6 last year, clearing the way for liquefaction in Damietta. Cyprus currently lacks domestic facilities for liquefying gas, while plans for a terminal at Vasiliko have stalled over recent years.
First sales targeted for 2028
Eni made its final investment decision in July. At that time, the company estimated that Kronos held over three trillion cubic feet of gas.
The company has pledged to accelerate development, with hopes that sales of Cypriot gas could begin as early as 2028.
President Nikos Christodoulides has also backed that timetable. Earlier this year, he said Cyprus aimed to begin selling its gas to Europe via Egypt in 2028 and was approving all agreements needed for that purpose.
President welcomes deal amid criticism
Following the signing, Christodoulides described the development as a decisive advance in making use of Cyprus’ natural resources. He said it demonstrated strong confidence in the country’s energy potential and had substantial economic and geopolitical importance.
He also said the project would help strengthen the economy, increasing the state’s ability to fund policies that improve people’s everyday lives and quality of life.
The agreement has nevertheless drawn criticism directed at the Cypriot government. Energy expert Charles Ellinas has said Eni could be seeking further concessions that would lower the state’s earnings from extracting and selling the gas.
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