EL7.AI
CommoditiesMediumUpdated×3•Originally published 23 October 2026•Updated 24 October 2026•
4 min read

Cyprus’s Cronos Contracts Valued at $1.3 Billion to $1.8 Billion, Signing Imminent

Key Facts

1The expected value of the drilling and pipeline contracts is between $1.3 billion and $1.8 billion.
2The contracts could be signed as early as Monday, according to a Wall Street Journal report.
3The Cronos project targets production in 2028, at a plateau of about 500 million cubic feet per day.
4Cyprus’s Hydrocarbons Department estimates the field’s resources at about 3.1 trillion cubic feet.

Eni expects to sign contracts for drilling and pipeline infrastructure for the Cronos gas project off Cyprus, with a total value of between $1.3 billion and $1.8 billion, according to a Wall Street Journal report published on October 23. The report cited people familiar with the matter as saying the signing could take place as early as Monday. The contracts move the project into the execution phase following the final investment decision announced by Eni on July 28, 2026. The project aims to deliver the first Cypriot gas to market in 2028. The plan links production to existing Egyptian facilities for gas processing and liquefaction before marketing.

Cronos is located in Block 6, and Cyprus’s Hydrocarbons Department estimates its resources at about 3.1 trillion cubic feet, while Eni has said the field initially contains more than 3 trillion cubic feet. The company estimates production could reach a plateau of 500 million standard cubic feet per day. TotalEnergies says that level is equivalent to about 2.8 million tonnes of liquefied natural gas a year, with production expected to start in 2028. The field lies in deep water about 185 kilometers southwest of the Cypriot coast. Its development plan includes four subsea wells, according to TotalEnergies.

Under Eni’s arrangements, gas will be transported to Egypt’s existing Zohr field facilities, then to the Damietta plant for liquefaction and export. TotalEnergies said the main commercial and contractual agreements needed to develop the project have been signed, including terms for using Zohr facilities, transporting gas through Egypt, liquefying it in Damietta and selling it as LNG. Eni says it will market 50% of the LNG volumes, equivalent to 1.4 million tonnes a year. Eni and TotalEnergies each own 50% of Block 6, with Eni as operator. The arrangement gives Egypt a role in processing, liquefaction and exports, as well as transit through its existing infrastructure.

An Associated Press report in August estimated the option of transporting Cronos gas to Egypt for processing at about $2 billion, or 1.73 billion euros, and said Zohr’s facilities are 105 kilometers from the field. That is an estimate for the transport and processing route, separate from the value of the infrastructure contracts cited by the Wall Street Journal. The AP quoted Cyprus’s energy minister as saying pipeline construction would start later in 2026 and could take up to 18 months. After Cronos is connected to Zohr’s facilities, the gas will be transported to Damietta for liquefaction and shipment to Europe. The minister said, "Our income as a country will not be large; so the project’s importance lies not in the money, but in starting production and obtaining the first gas."

The Associated Press said the agreement directs more than 3 trillion cubic feet of gas to Europe, with a provision that could allow about one-fifth to be allocated to meet some of Egypt’s domestic needs. Cyprus’s energy minister said the eastern Mediterranean is gaining importance as an alternative source of gas for Europe amid Russia’s war in Ukraine and turmoil in the Middle East. Eni Chief Executive Claudio Descalzi described the Cronos initiative as a "concrete milestone" in establishing Cyprus as a producer and exporter of gas to Europe. Eni describes the project as its first development in Cyprus and the country’s first hydrocarbon project. The company sees the use of existing infrastructure as enabling cost efficiencies and faster market access.

Halliburton announced on September 15 that it had secured an integrated contract from Eni for well construction and completion services for the Cronos development in ultra-deep waters in Block 6. On October 7, Egypt’s petroleum minister said Egyptian-Cypriot cooperation had moved to commercial arrangements and execution projects to make use of Egyptian infrastructure. The minister, Karim Badawi, then discussed progress on connecting Cronos to Egyptian infrastructure with TotalEnergies officials on October 21, and the ministry affirmed Egypt’s commitment to accelerating implementation. These statements place the connection among execution projects and cooperation between Egypt and Cyprus. The target date for starting production remains 2028, while the Associated Press said the pipeline could take up to 18 months.