The Kronos gas field in Block 6 of Cyprus’ Exclusive Economic Zone (EEZ) is now in the final stage of development as officials prepare for a potential final investment decision.
- The Kronos gas field in Block 6 of Cyprus’ Exclusive Economic Zone (EEZ) is now in the final stage of development as officials prepare for a potential final investment decision.
President Nikos Christodoulides announced this significant update during a meeting on Thursday with Guido Brusco, Eni’s chief operating officer of global natural resources. Christodoulides expressed the importance of this development not only for Cyprus but also for Egypt and Europe, stating, “It is very important that we are in the final stage of development of Kronos.” He emphasised the urgency of finalising discussions to expedite the project.
With the final investment decision expected soon, the groundwork is being laid for gas extraction from beneath the seafloor. Christodoulides highlighted the need to complete preparations by March 30, linking this timeline to an invitation from Egyptian President Abdel Fattah al-Sisi to participate in the Egypt Energy Show in Cairo from March 30 to April 1.
Brusco reaffirmed Eni’s commitment, noting that they are diligently working to establish a clear timetable to advance the project. He remarked, “We are in the very last stage. There are a few things left, which we believe will be closed very soon.” The timeline for potential gas exports could see Cypriot natural gas reaching European markets as early as next year, contingent on the completion of necessary obligations.
In discussions surrounding the project, Energy Minister Michael Damianos revealed that the Egyptian government is considering waiving a domestic law clause requiring 20% of gas produced to be utilised in the domestic market. If approved, this change could facilitate greater gas exports to Europe, enhancing the project’s viability and attractiveness to investors.
Brusco noted that Eni and its consortium partner, Total, have already invested $1.2 billion in the development of Block 6. He stated, “The agreement with Cyprus, Egypt, Eni, and Total paves the way for the completion of the project.” This agreement is part of a series of deals established last year between Cyprus and Egypt, designating the latter as the “host government” for Block 6.
The proximity of the Kronos field to Egypt’s Zohr gas field, which Eni also operates, presents logistical advantages. Eni plans to leverage existing infrastructure to transport Cypriot natural gas to the Segas liquefied natural gas (LNG) terminal in Damietta, Egypt.
Karim Badawi, Egypt’s petroleum minister, had previously expressed intentions to accelerate the process of transporting Cypriot gas to Egypt for liquefaction, with expectations that gas could be ready for European delivery by 2027. He emphasized the strategic importance of this collaboration, stating, “We are all collectively committed to delivering the first Cypriot gas through Egypt’s terminals to Europe by 2027.”
The extraction of natural gas off the coast of Cyprus, followed by liquefaction in Egypt and subsequent export to Europe, aims to position Cyprus as a key player in the European energy market. Seabed surveys for the pipeline connecting the two nations began in June last year, initially targeting the Aphrodite gas field for transport to Damietta. This initiative followed agreements involving Cyprus, Egypt, and key industry players like Chevron, NewMed Energy, and the BG Group, establishing a framework for effective gas commercialization.
