Cyprus and ENI are in the final stage ahead of an investment decision on the “Cronos” natural gas field in Cyprus’ Exclusive Economic Zone (EEZ), with ENI estimating that gas exports to Egypt could begin by the end of 2027 or in early 2028, provided that the remaining outstanding issues are resolved soon.
Speaking to journalists after his meeting with Cyprus President Nikos Christodoulides, in Nicosia on 8 January, ENI Chief Operating Officer Guido Brusco described the talks as “very constructive” and said the project was at “the final stage to make an investment decision on Cronos.” He said that together with the President and the Minister of Energy, ENI had set a clear schedule aimed at concluding the process “as soon as possible.”
Asked when gas from Cronos or other Cypriot fields would reach Egypt for export, Brusco said that while ENI is known for fast-track development, it takes “two to tango,” noting that some documents must still be finalized before a final investment decision can be taken.
“We are at the very last stage. There are a few things missing, which we believe to close very soon,” he said
When asked on reports pointing to the end of 2027 or early 2028 as a start date for gas flows, Brusco confirmed that such a timeline was possible. “This is a possible date, of course, if we complete our homework,” he said.
Earlier, during the meeting at the Presidential Palace, President Christodoulides stressed that Cyprus wants to conclude all outstanding issues by 30 March.
“We’re at the final stage of the development of Cronos,” he said, pointing out that the project is important “for us, for you, for Egypt, for Europe.” He added that Cyprus’ team was ready and that discussions had already taken place with Egypt’s Minister of Energy.
The President also said that he had received a letter from Egyptian President Abdel Fattah el-Sisi inviting him to an energy forum in Cairo from 30 March to 1 April, an event expected to highlight the Cronos project. He also said Sisi had asked the President of the European Commission to attend, stressing European interest in the project. “We need to finish before March 30th,” he said.
“For us, it’s going to be the first development of the fields that we have in our exclusive economic zone,” President Christodoulides said. “It’s very important for the country, for the economy, for our people.”
Brusco, thanking the President for his “warm welcoming,” pointed out ENI’s long-term commitment to Cyprus. He said the consortium had invested $1.2 billion in the country during the exploration phase alone, with $800 million coming from ENI. He also noted that the Republic of Cyprus, the Republic of Egypt, ENI and Total had basically agreed all the foundation agreements, paving the way toward project completion.
However, he acknowledged delays, saying the talks were originally meant to conclude by 30 November. “We didn’t meet the date, so now we are really under the clock to finalize it,” he said. As he said, the gas sales agreement and the development and production plan still need to be finalized, along with several outstanding issues related to export volumes, the development area and the gas pricing formula.
Energy Minister: Egypt shows willingness to waive the 20% clause
Energy Minister Michael Damianos also expressed satisfaction with the progress of consultations regarding the “Cronos” gas field, speaking after his meeting with ENI representatives. He stressed that the project is moving forward in line with the agreed timelines, with the end of March set as a key milestone. At the same time, he confirmed that there is willingness on the part of Egypt to waive the 20% clause concerning the utilization of the “Cronos” field for the Egyptian market.
In statements to journalists, Damianos said that today’s discussion was “very constructive,” focusing on the individual issues related to the “Cronos” field and the associated timelines. As he explained, it has been decided to proceed according to the existing schedule, so that by the end of March at the latest the next phases of the project can move forward.
“The goal is for the first natural gas to leave Cyprus’ exclusive economic zone for the benefit of Cyprus, Europe and the wider region, including Egypt and the companies themselves,” he said.
Responding to a question about the 30 March milestone, the Minister confirmed that this is the date on which the first investment decision is expected to be taken. He explained that subsequent stages will follow based on timelines that had already been pre-agreed.
“What matters is that by the end of March we are finished,” he said, adding that the next phases are projected toward the end of 2027.
Asked whether Egypt’s willingness to waive the 20% clause for the sale of natural gas from “Cronos” to the Egyptian market facilitates the overall process, Damianou said that such a stance can help where needed.
“There is such an intention; it does not mean that it is a decision,” he clarified, noting that there is also the prospect that the gas could be utilized in Egypt. “It is natural for such flexibility to exist on the part of Egypt as well,” he concluded.
(Source: CNA)
