Eni plans to sign $1.8 billion in contracts for Kronos field infrastructure — Cyprus Mail

Italian energy company Eni plans to sign $1.8 billion in contracts on October 26 to build infrastructure that will enable gas extraction from Cyprus’ Kronos field beneath the seabed and its transportation to Egypt for liquefaction. This was reported by Cyprus Mail.

Development of Block 6

The Kronos field is located in Block 6 of Cyprus’ exclusive economic zone. Eni holds rights to the resources in this block jointly with French energy company Total.

Kronos is located near Egypt’s Zohr gas field, which is also operated by Eni. The company will be able to use its own infrastructure to transport Cypriot gas to the Segas liquefied natural gas terminal in the Egyptian port city of Damietta. From there, the gas is planned to be exported to Europe and, if necessary, to other markets.

Plans for 2028

In July, Eni made a final investment decision on the project. At the time, the company said that, according to its estimate, the field contains more than 3 trillion cubic feet of natural gas.

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Eni announced an accelerated development model and expects to begin selling Cypriot gas as early as 2028. Cyprus President Nikos Christodoulides had previously also stated that the goal was to supply the first Cypriot gas to Europe via Egypt in 2028.

Last year, the Egyptian government was designated as the host government for Block 6, paving the way for gas liquefaction in Damietta. Cyprus has no gas liquefaction capacity of its own, while efforts to build such a terminal in Vasiliko have reached a dead end in recent years.

Energy expert Charles Ellinas suggested that Eni may seek additional concessions that would reduce state revenues from gas production and sales. He also noted that the volume of liquefied natural gas on the market could increase by up to 40% in the coming years, which, in his view, could significantly lower LNG prices.