Cyprus is moving for the first time from exploration and discoveries to the production and sale of natural gas.
Italian energy company Eni announced the final investment decision for the development of the “Cronos” field, located in Block 6 of Cyprus’ Exclusive Economic Zone, with the aim of delivering the first quantities to international markets in 2028.
The decision means that Eni and France’s TotalEnergies, which each hold a 50% stake in the project, are committing to proceed with the construction of subsea facilities, pipelines, and the remaining infrastructure required to begin production. The value of the investment has not been disclosed.
In practical terms, commercial sales will not begin immediately. The final investment decision activates the development programme, allowing Cypriot natural gas to reach the market in 2028.
“Cronos” thus becomes the first Cypriot gas field to enter the implementation phase, despite the fact that the first natural gas discovery in Cyprus’ EEZ, the “Aphrodite” field, was made back in 2011.
Production of 500 million cubic feet per day
According to Eni’s announcement, “Cronos” contains more than three trillion cubic feet of natural gas. The official average estimate of Cyprus’ Hydrocarbons Service stands at 3.1 trillion cubic feet.
Production is expected to reach a stable level of 500 million cubic feet per day. This corresponds to approximately 5 billion cubic metres of natural gas annually, before processing, technical losses, and the conversion of part of the quantities into LNG.
The gas will be produced through subsea facilities and transported via pipeline to the infrastructure of Egypt’s “Zohr” gas field, located approximately 70 kilometres away. From there, it will be transferred to Zohr’s onshore facilities for processing and then to the LNG liquefaction plant in Damietta.
At Damietta, it will be converted into liquefied natural gas and loaded onto ships destined for international markets, mainly Europe. Depending on demand and commercial agreements, part of the quantities may also be sold to Egypt’s domestic market.
The full development plan has already been approved by the Cypriot government, and the exploitation licence was granted in June 2026.
Approximately 2.8 million tonnes of LNG annually
Eni will undertake the commercial marketing of 50% of the LNG quantities produced from “Cronos”, corresponding to 1.4 million tonnes per year.
This indicates that the project’s total LNG production will be approximately 2.8 million tonnes annually.
The Italian company estimates that Cypriot gas will strengthen its international LNG portfolio, with the goal of exceeding 20 million tonnes per year by 2030. The Damietta facility has a nominal capacity of approximately 5.2 million tonnes of LNG annually and is owned 50% by Eni, 40% by Egypt’s EGAS, and 10% by EGPC.
The Egyptian terminal resumed operations in 2021 after being inactive for nearly nine years, but declining domestic natural gas production in Egypt once again limited exports. In June 2026, it was still being used to store imported LNG cargoes intended for the Egyptian market.
Supplying Damietta with Cypriot gas therefore holds particular importance for Egypt as well. Eni argues that “Cronos” will enable the substantial restart of the facility and the restoration of stable Egyptian LNG exports.
Descalzi: Cyprus is becoming a producer and exporter
Eni CEO Claudio Descalzi described the decision as a concrete step towards establishing Cyprus as a European country producing and exporting natural gas.
He said that the use of existing Egyptian facilities creates the conditions for a regional natural gas hub in the Eastern Mediterranean and contributes to diversifying energy sources and strengthening Europe’s supply security.
The choice of “Zohr” and Damietta significantly reduces both development costs and timelines, as the construction of a new LNG facility in Cyprus is not required. It also avoids the need for a larger and more expensive transportation network, given the relatively close distance between “Cronos” and Egyptian infrastructure.
From discovery to production in six years
“Cronos” was discovered in August 2022, approximately 160 kilometres southwest of Cyprus, at a sea depth of 2,287 metres. The “Cronos-1” drilling operation identified a natural gas column in a carbonate reservoir, with a net thickness exceeding 260 metres.
Initial estimates suggested reserves of 2.5 trillion cubic feet, a figure later revised upwards to more than three trillion cubic feet.
The confirmation drilling “Cronos-2”, completed in February 2024 approximately three kilometres from the first well, proved that there is hydraulic communication between the different sections of the field. A production test showed that a single well could deliver more than 150 million cubic feet of natural gas per day.
The same block also contains the “Calypso” field, discovered in 2018, and the “Zeus” field, discovered in 2022. Eni estimates that there is additional potential exceeding two trillion cubic feet, which could eventually be connected to the same infrastructure and extend the productive life of the project.
Agreements with Egypt
The final investment decision marks the conclusion of a series of governmental and commercial negotiations. In February 2025, an agreement was signed in Cairo, in the presence of Cypriot President Nikos Christodoulides and Egyptian President Abdel Fattah el-Sisi, with the host country regarding the development of Block 6 gas fields.
In October of the same year, three additional commercial agreements were signed in Limassol. The first regulates the management, transportation, and processing of gas by Eni, TotalEnergies, EGAS, Petrobel, and Eni’s Egyptian subsidiary. The second defines the usage fees for the Damietta LNG facilities, while the third sets transportation and processing charges.
In May 2026, Cyprus’ Cabinet approved the “Cronos” development and production plan, as well as the main terms of the sales agreement.
The final investment decision had initially been expected at the end of March and later in June, but was delayed due to final negotiations regarding contractual responsibilities, cost overruns, and delivery obligations.
The significance for Cyprus and Europe
Around 15 to 18 trillion cubic feet of natural gas have been identified in Cyprus’ EEZ, distributed across different blocks and fields requiring separate development plans and investment decisions.
The difference with “Cronos” is that it has a clear commercial route, agreements for the use of existing infrastructure, and a specific timeline for entering the market. If the schedule is maintained, it will become the first field to generate revenues for the Republic of Cyprus.
The exact financial terms and sale price remain confidential. Therefore, a reliable estimate of state revenues cannot yet be calculated, as these will depend on international prices, development and operational costs, final marketable quantities, and the duration of production.
The decision, however, removes the most significant uncertainty. Fifteen years after the discovery of “Aphrodite” and almost six years after the drilling of “Cronos”, Cypriot natural gas now has a specific export date and a commercial destination.
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