Italian energy group Eni and French partner TotalEnergies have signed contracts worth up to $1.8 billion (€1.61 billion) to develop the Kronos natural gas field in Cyprus's Exclusive Economic Zone (EEZ). The agreements, signed on Monday, mark the first commercial hydrocarbon development project for the island nation.
The project aims to channel Cypriot gas to international markets, with exports to Europe expected to begin after production starts in 2028. The gas will be transported to Egypt, where it will be processed using existing infrastructure, including facilities linked to the Zohr field, and then liquefied at the Damietta plant for export.
Cyprus's President Nikos Christodoulides described the signing as "a strong vote of confidence in our country's energy prospects, with particular geopolitical and economic significance." The deal was formalized after a meeting at the Presidential Palace with Eni's Chief Operating Officer for Global Natural Resources, Guido Brusco.
Historic milestone for Cyprus
Brusco called the development a "historic milestone" for Cyprus, noting that the Kronos field holds estimated reserves of more than 3 trillion cubic feet (TCF) of natural gas. Once operations stabilize, production could reach up to 500 million cubic feet per day.
The use of Egypt's existing infrastructure is a central pillar of the plan, enabling the field's development through regional energy partnerships and reducing costs and timelines. Eni has been active in Cyprus since 2013, and Brusco emphasized the company's long-term commitment to the country's energy future.
"It is our first development project in Cyprus and confirms our commitment to being a long-term partner in the country's energy future," he said.
The project also highlights the strategic importance of energy cooperation in the Eastern Mediterranean. Cyprus, Greece, Egypt, and Italy could form a broader energy corridor linking regional fields with European markets. Cyprus offers new gas volumes, Egypt provides processing and liquefaction, Greece offers interconnection points, and Italy serves as a gateway to one of the EU's largest energy markets.
This cooperation could spur infrastructure investment, deepen trade ties, and reduce Europe's dependence on a limited number of suppliers. The development comes at a time of heightened tensions in the Middle East, underscoring the need for diversified energy sources.
For Nicosia, the agreements go beyond immediate economic value. According to the daily Phileleftheros, revenues from gas sales will not flow immediately, but the deal is seen as a vote of confidence in Cyprus's prospects and a step toward tapping Europe's own energy resources.
The project also has geopolitical implications, as it strengthens Cyprus's position in regional energy diplomacy. The island has been in discussions with Israel over potential energy cooperation, and the two countries are reportedly nearing a €150 million warship deal, reflecting broader security ties in the region.
Eni and TotalEnergies accelerated the project's timeline in July, targeting first production in the first half of 2028. The use of existing infrastructure is expected to reduce development costs and shorten construction time.
Brusco stressed that the start of implementation marks the launch of a complex project requiring high-level expertise, close coordination among stakeholders, and strict safety standards.
