Eni: Kronos to produce 500 mln cubic feet of gas per day — Cyprus Mail

Italian energy company Eni expects the Kronos field in Cyprus’s exclusive economic zone to produce 500 million cubic feet of natural gas per day. Production is planned to begin in 2028, Eni’s chief operating officer for global natural resources, Guido Brusco, said after the company signed $1.8 billion in contracts to build production infrastructure, Cyprus Mail reports.

Supplies through Egypt

Gas from Kronos is to be delivered to Egypt, where it will be processed and liquefied. According to Brusco’s estimate, this will make it possible to produce about 40 cargoes of liquefied natural gas per year. Eni expects to sell most of the volumes on the European market.

Egypt will have the right to purchase part of the gas on market terms. According to the Eni representative, the sale price will depend on market conditions in 2028. He also noted that such a project does not necessarily need to have a guaranteed buyer in advance: part of the resource can be sold on the spot market, including through Eni’s regasification capacity in Italy. At the same time, the company is seeking opportunities for long-term contracts for part of the volumes.

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Eni and Total shares

Eni forecasts that its liquefied natural gas portfolio will exceed 20 million tonnes per year by 2030. Cypriot gas will account for 1.4 million tonnes. Total production at Kronos is expected to amount to 2.8 million tonnes, while France’s Total, Eni’s partner in Block 6 of Cyprus’s exclusive economic zone, will have rights to the other half.

Brusco called the project competitive due to the use of existing Egyptian infrastructure for gas processing and liquefaction. He also denied that Cyprus had granted Eni extraordinary concessions to maintain energy companies’ interest in the country, stating that the contract is a standard production-sharing agreement.