Energy cooperation between Cyprus and Egypt for the development of the 'Cronos' natural gas field is moving to the next phase, with the completion of significant technical and commercial agreements expected in the coming weeks.
Replying to questions from CNA, Cyprus' Minister of Energy, Commerce and Industry, George Papanastasiou, referred to important developments following his meeting with Egypt’s Minister of Petroleum and Mineral Resources, Karim Badawi, held in Nicosia last week. The meeting, however, was overshadowed by the devastating wildfires that struck the Limassol district.
The meeting, which included senior executives from Eni and TotalEnergies, took place under the framework of the Steering Committee overseeing the development of the field in Block 6 of Cyprus’ Exclusive Economic Zone (EEZ). The focus was the progress of the Host Government Agreement, co-signed by the Republic of Cyprus, Egypt, and the investors Eni and Total.
According to the Minister, this was a “first high-level contact” between all involved parties to set political directions and ensure the necessary support to the companies, ahead of the submission of the final Development and Production Plan for the field.
Key agreements between Egypt and investors expected by Mid-August
Papanastasiou revealed that key commercial agreements between Egypt and the investors have already been drafted. These agreements cover the entire supply chain, from gas extraction to its liquefaction at the Egyptian facility in Damietta.
In parallel, a separate gas sales agreement between the Republic of Cyprus and the investors is being prepared. A preliminary version has already been submitted and is expected to be finalised by the end of August.
“September will be a month of consultations, aiming for a signing around October,” the Minister said.
Final investment decision by the end of 2025, first gas in 2027
At the same time, Eni and TotalEnergies have submitted a draft Development and Production Plan for the “Cronos” field to the Republic of Cyprus, which is currently under review. As the Minister explained, the plan outlines both the technical and commercial aspects of the project.
The companies aim to make a Final Investment Decision by the end of 2025. Minister Papanastasiou described this target as “challenging but realistic,” noting that tenders must first be issued for each segment of the supply chain.
“It’s a stretch but achievable target,” he said, adding that if everything proceeds smoothly, 2027 could be the critical year for the first gas flow from “Cronos”.
“What’s important is that 100% of the gas is expected to be liquefied and exported,” he added.
Egypt is ready to support
According to a related article by Egypt Oil & Gas on 27 July, Egypt's Minister Karim Badawi reaffirmed his country’s full readiness to support the implementation of the project and remove any potential obstacles. He pointed out that the creation of a new regional gas corridor is a shared objective, offering benefits to both countries and contributing to Europe’s energy security.
The article also reported that the two Ministers exchanged views on ongoing subsea surveys related to the pipeline route toward Egypt, as well as the development of the “Aphrodite” field. These efforts follow the Memorandum of Understanding (MoU) signed in Cairo last February.
The next session of the Steering Committee is expected to take place either in Cairo or Damietta, following an invitation extended by Minister Badawi to his Cypriot counterpart.
However, Minister Papanastasiou noted that another meeting between the two Ministers and the companies will likely take place first, on the sidelines of the Gastech international energy exhibition in Milan, scheduled for 9–12 September, 2025. Both Ministers are expected to be accompanied by their technical teams.
(Source: CNA)
