Egypt and Cyprus have signed three commercial agreements for the exploitation of the Cronos natural gas field, marking a significant step toward enabling the export of natural gas from the field off the coast of Cyprus through Egypt's infrastructure. The agreements aim to strengthen energy security through strategic collaboration and forge an energy bond between the two countries.

Agreement Details and Participants

Egypt's Ministry of Petroleum and Mineral Resources and Cyprus' Ministry of Energy, Trade, and Industry confirmed the signing of the commercial agreements for the Cronos natural gas field. The agreements were signed in the presence of George Papanastasiou, Cyprus' Minister of Energy, Commerce and Industry, and Karim Badawi, Minister of Petroleum and Mineral Resources of the Arab Republic of Egypt.

Representatives of the operators of the facilities in Egypt signed the agreements, including the Egyptian State Natural Gas Company (EGAS), alongside Eni and TotalEnergies, which together constitute the licensed consortium of Block 6. Egypt's Ministry of Petroleum and Mineral Resources also signed an initial tariff agreement for the Cronos project with Eni and TotalEnergies.

The commercial agreements serve as a follow-up to the host government agreement signed in Egypt in February 2025 between Egypt and the Eni-TotalEnergies consortium for the development of hydrocarbons in Block 6 of the Exclusive Economic Zone (EEZ) of the Republic of Cyprus.

Offshore Operations Agreement

An agreement covering offshore handling, processing, and transportation for the Cronos field project was signed by Mahmoud Abdel Hamid, Chairman of the Egyptian Natural Gas Holding Company (EGAS), together with Francesco Gasparri, President of IOEC Production, a subsidiary of Eni, Alessandro Gelmetti, Managing Director at Eni Cyprus, and Pascal Breant, Managing Director of TotalEnergies Egypt and Cyprus for Exploration and Production.

Badawi affirmed that the signing of these agreements marks the culmination of the understandings between Egypt's President Abdel Fattah El-Sisi and Nikos Christodoulides, President of Cyprus, aimed at enhancing cooperation between the countries to accelerate the connection of the Cypriot gas fields to Egypt's infrastructure.

Field Discovery and Development Timeline

The Cronos gas field was discovered in 2022 using the Tungsten Explorer drillship and appraised in February 2024. A deal signed earlier this year sets a framework to allow the gas to be processed in the existing Zohr facilities offshore Egypt and then liquefied in the Damietta LNG plant for export to European markets.

Following the approval of the development and production plan and the final investment decision by the end of 2025, the first gas production from the field is expected in 2027. This development is anticipated to substantially contribute to strengthening the energy security of the region and promoting the Eastern Mediterranean as a strategic energy hub.

Regional Energy Cooperation

Cyprus' Ministry of Energy, Trade, and Industry highlighted that “The signing of the three commercial agreements constitutes another milestone on the path to the commercial exploitation of the 'Cronos' deposit and practical proof of the close cooperation between Cyprus and Egypt.”

The agreements represent a strategic collaboration between Egypt and Cyprus, enabling Cypriot gas to reach Egypt's infrastructure and creating an energy bond between the two countries. The project framework allows for the processing of gas from the Cronos field in Egypt's existing offshore facilities before being liquefied for export to European markets.

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