Cyprus’ First Gas Field Moves to Construction After $1.8bn Deals
by Bill Giannopoulos · Greek City TimesThe Cronos gas field off Cyprus has moved into its construction phase, after Eni signed contracts worth up to US$1.8 billion at the Presidential Palace in Nicosia on Monday.
The Italian energy company signed the main contracts for engineering, procurement, construction, installation and drilling. It is the first Cypriot hydrocarbon field to reach development, about 15 years after gas was first found in Cyprus’ exclusive economic zone.
President Nikos Christodoulides called the investment “a strong vote of confidence in our country’s energy prospects”. He also linked the project to a stronger economy and more room for state investment.
Energy Minister Michalis Damianos told the ceremony it was “an important step in Cyprus’ transition from exploration and discovery to the development and production of our natural gas resources”.
Read more: Greece, Cyprus and Egypt Push Ahead With Gas Route to Europe Bypassing Hormuz and Red Sea
What the Cronos gas field contracts cover
The work includes subsea production and control systems, gas pipelines, a floating control unit and the drilling of the wells. In total, the plan foresees four subsea production wells.
At its peak, the Cronos gas field should produce about 500 million cubic feet of gas a day. Eni plans to start production in the first half of 2028.
The field sits in Block 6 of Cyprus’ exclusive economic zone, about 185 kilometres southwest of the island. Eni discovered it in 2022, before the partners finished the Cronos-2 appraisal in 2024.
According to the partners’ estimates, the Cronos gas field holds more than three trillion cubic feet of gas in place. However, that figure is not the same as the amount the partners can finally recover and sell.
Eni operates Block 6 with a 50% stake, while France’s TotalEnergies holds the other 50%. Separately, US company McDermott has already won a large share of the subsea work, valued at US$500–750 million.
Gas to reach Europe through Egypt
Gas from the Cronos gas field will not go directly to Cyprus for power generation. Instead, a subsea pipeline will carry it to existing facilities at Egypt’s Zohr field for processing, as part of the planned route to Europe via Egypt and Greece.
From there, the Damietta plant will liquefy the gas so tankers can ship it, mainly to Europe. Using Egyptian infrastructure cuts both cost and construction time, because Cyprus does not need its own liquefaction terminal.
At full capacity, output will equal about 2.8 million tonnes of liquefied natural gas a year. The export route rests on a February 2025 agreement between Cyprus, Egypt, Eni and TotalEnergies.
Earlier, on 28 July, Eni and TotalEnergies took the final investment decision on the project. Damianos said the Cronos gas field’s importance goes beyond the size of its reserves, as it is the first real attempt to turn Cyprus’ offshore discoveries into commercial gas.
Still, the US$1.8 billion is the value of the infrastructure contracts, not direct income for the Cypriot state. Future state revenue will depend on sales, gas prices, development costs and the revenue-sharing terms.
Also, because the gas is meant for export, the Cronos gas field will not automatically lower electricity bills in Cyprus.
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