Cyprus Signs $1.8bn Deal with Eni and Total for Kronos Gas Field
Nicosia – On Monday, Italian energy group Eni signed contracts worth up to $1.8 billion (€1.61 billion) to build the infrastructure required to develop the Kronos natural gas field within Cyprus's Exclusive Economic Zone. The agreement involves a partnership with French group TotalEnergies, marking a significant step toward harnessing the island nation's natural gas reserves and bolstering energy cooperation in the Eastern Mediterranean. Production is currently scheduled to begin in 2028, with exports to international markets and Europe expected to follow once operations stabilize.
The project aims to commercialize Cypriot natural gas via Egypt, utilizing existing regional infrastructure to facilitate transport. According to Guido Brusco, Eni’s Chief Operating Officer of Global Natural Resources, the gas will be transported to Egypt where it will be processed using facilities linked to the Zohr field off the Egyptian coast. From there, it will be fed into the Damietta liquefied natural gas plant for export chiefly to Europe. Brusco described this approach as a central pillar of the plan, noting that leveraging Egypt’s existing infrastructure enables development through regional partnerships and reduces both costs and construction time.
Cyprus President Nikos Christodoulides received an Eni delegation at the Presidential Palace prior to the signing ceremony, which covered the design, equipment procurement, construction, and installation phases. In a written statement, Christodoulides emphasized that the contracts represent a strong vote of confidence in the country's energy prospects, citing their particular geopolitical and economic significance. He noted that the agreement marks the first commercial exploitation of Cypriot natural gas, a milestone that strengthens Nicosia's position on the Eastern Mediterranean energy map.
Brusco highlighted that the Kronos field holds estimated reserves of more than 3 trillion cubic feet (TCF) of natural gas. Once operations have stabilized, production is forecast to rise to as much as 500 million cubic feet per day. He stated that the move into the implementation phase results from over a decade of Eni’s activity in Cyprus, dating back to 2013, involving investments in expertise, human resources, and technological infrastructure. "It is our first development project in Cyprus and confirms our commitment to being a long-term partner in the country's energy future," Brusco said.
In July, Eni and TotalEnergies decided to accelerate the project's rollout, setting a target for production to start in the first half of 2028. The initiative underscores the strategic importance of strengthening energy cooperation among Cyprus, Greece, Egypt, and Italy. This collaboration forms part of a broader energy corridor linking Eastern Mediterranean fields with the European market. While Cyprus provides new volumes of natural gas, Egypt offers processing and liquefaction facilities, Greece provides strategic interconnections for channelling flows toward south-eastern and central Europe, and Italy serves as a key entry point to one of the EU's largest energy markets.
According to daily newspaper Phileleftheros, revenues from gas sales are not expected to begin flowing immediately. However, the deal reinforces the case for tapping Europe's own energy resources to reduce reliance on external suppliers. At a time when European countries seek to mitigate risks arising from dependence on limited suppliers and supply routes, the development of the Kronos field highlights the potential for deepening trade ties and developing new energy transport routes across the region. This report was produced in the Europe Brief News newsroom.
