Energy, Oil & Gas

Eni signs key contracts to advance Cyprus’ first gas development

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Eni has signed engineering, procurement, construction and drilling contracts for the Cronos gas project offshore Cyprus, marking the start of its execution phase and a significant step towards commercialising the country’s first gas development.

The launch was marked by a ceremony in Nicosia attended by Cypriot President Nikos Christodoulides, Energy, Commerce and Industry Minister Michael Damianos, and Eni Chief Operating Officer Global Natural Resources Guido Brusco.

The contracts cover key components of the development, including a Floating Control Unit, transportation and installation, offshore pipelines, subsea production systems, flexible lines, umbilicals, onshore pipeline construction and drilling services.

The milestone follows the final investment decision announced on July 28, 2026, for the development of the Cronos gas discovery in Block 6 offshore Cyprus.

The project holds estimated resources of more than three trillion cubic feet (Tcf) of gas initially in place and is expected to achieve peak production of up to 500 million standard cubic feet per day.

Production start-up is targeted for the first half of 2028.

Eni plans to accelerate development through a regional integration model that makes use of existing infrastructure.

Gas produced from Cronos will be transported to Egypt for processing through existing facilities, including infrastructure associated with the Zohr field, before being liquefied at the Damietta LNG plant and exported to international markets, primarily Europe.

The approach is intended to streamline project execution while reducing the need for new infrastructure and connecting Cyprus’ gas resources to established regional processing and export facilities.

Cronos represents Eni’s first gas development project in Cyprus and the country’s first hydrocarbon development.

The project is expected to support Cyprus’ emergence as a natural gas producer and exporter while strengthening energy cooperation across the Eastern Mediterranean.

Eni has operated in Cyprus since 2013.

The Italian energy company operates Block 6 with a 50% interest, alongside partner TotalEnergies.

It also operates Block 8 and holds participating interests in Blocks 7 and 11, which are operated by TotalEnergies.

The project underscores the growing role of regional infrastructure in unlocking Eastern Mediterranean gas resources and supplying international markets, particularly Europe. -OGN/TradeArabia News Service