Cyprus has launched its first investment project for commercial natural gas production, with plans to export the gas through Egypt to Europe

Cyprus has taken an important step toward beginning its first commercial natural gas production after the Italian energy company Eni signed contracts worth up to $1.8 billion to build the necessary infrastructure at the Cronos field. The project is being carried out in partnership with France’s TotalEnergies and involves the construction of subsea production facilities, wells, and gas pipeline infrastructure to transport the extracted gas to Egypt. The first gas is expected to be produced in the first half of 2028, BalkanEngineer.com learned from information provided by the Greek Reporter.

The contracts were signed on October 26, 2026, at the Presidential Palace in Nicosia in the presence of President Nikos Christodoulides, Energy Minister Michail Damianos, and representatives of Eni. These contracts mark the start of the actual implementation phase of the project, following the final investment decision made by Eni and TotalEnergies in July. The two companies each hold a 50% stake in the field, located in Block 6 of Cyprus’s exclusive economic zone. Cronos was discovered in 2022, with initial estimates indicating the presence of over 3 trillion cubic feet of natural gas, or approximately 85 billion m³.

The technical implementation involves four subsea production wells, and the projected production capacity once steady-state operations are reached is up to 500 million cubic feet per day, which is equivalent to approximately 14 million m³. A number of international engineering and technology companies are participating in the project.

The extracted gas will be transported to Egypt, where it will pass through the existing infrastructure connected to the Zohr field before reaching the liquefied natural gas (LNG) terminal in Damietta. From there, the production will be destined primarily for European markets. The use of existing facilities in Egypt eliminates the need for a new liquefaction terminal in Cyprus and is one of the key factors driving the project’s accelerated development.

Cronos will be the first field that Cyprus will develop for commercial hydrocarbon production, although the country also has other discovered gas resources, including the Aphrodite field. For the Cypriot authorities, the project is linked both to future natural gas revenues and to the expansion of energy cooperation with Egypt and European partners. A complex set of drilling, construction, installation, and subsea engineering activities must be completed before production and exports can begin.

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