Eni Begins Execution of Cronos Project Under Contracts Valued at $1.3 Billion to $1.8 Billion

Key Facts

Eni announced on October 26 that it had signed the main engineering, procurement, construction and drilling contracts for the Cronos project, marking the start of the execution phase, while the contract package was estimated to be worth between $1.3 billion and $1.8 billion. The work includes floating control units, offshore pipelines, subsea production systems and drilling. Reports published earlier that same morning had said the signing was scheduled for that day and estimated the value at about $1.8 billion, but Eni's subsequent announcement confirmed that the contracts had been signed, while the value remained an estimated range. A signing ceremony for the contract to construct and install the development facilities was scheduled at the Presidential Palace in Nicosia. The contracts move the project from the investment decision stage to implementation of the facilities needed to produce gas and transport it to Egypt, in preparation for liquefaction and export.

The announcement follows the final investment decision Eni took on July 28, 2026, to develop the field, with the first Cypriot gas targeted to reach the market in 2028. When announcing the decision, the company said Cronos was its first development project in Cyprus and the country's first hydrocarbon project. The field contains more than 3 trillion cubic feet of gas in place, according to Eni's estimate, a quantity the company does not describe as proven reserves. The plan expects production to reach a plateau of 500 million cubic feet per day. The combination of the resource size and production target frames the project as its contracts now enter the execution phase, while 2028 remains the stated target for gas to reach the market.

The development plan includes drilling 4 subsea wells and connecting them to an offshore pipeline that will carry gas from Cypriot waters to Egypt. There, the gas will be processed using existing facilities, including infrastructure at the Zohr field, before being liquefied at the Damietta plant. Eni said the liquefied gas will be marketed to international markets, particularly Europe. This route puts Egypt at the center of the chain for transporting, processing and exporting Cypriot gas, using operating facilities instead of building a complete export route from scratch. The gas's European destination also distinguishes the plan from a broader description of exports to international markets, as the company identified Europe as the main target market.

The plan relies in part on existing Egyptian facilities, including Zohr's infrastructure and the Damietta plant, which TotalEnergies says will create synergies and support rapid development. The company had linked the use of existing infrastructure to cost savings, a smaller environmental impact and faster access to market. In August, Cyprus's energy minister said the distance to Zohr's facilities was 105 kilometers and that building the pipeline could take up to 18 months. He added that transporting the gas to Egypt was the most economically viable option. At the time, expectations pointed to work on the pipeline beginning later in 2026, but Eni announced in October that it had signed the project's main execution contracts. This follows an earlier agreement between Egypt, Cyprus and the Eni-TotalEnergies consortium, which the Cypriot minister described as important for resolving the technical details of transporting gas to Egyptian facilities for liquefaction and export.

On marketing arrangements, TotalEnergies said it would market 50% of the liquefied gas, equivalent to 1.4 million tonnes a year at the targeted operating level. This sets out a defined division of the two companies' roles in the project chain, alongside the responsibility of Egyptian infrastructure for processing and liquefying the gas. In August, Cyprus's energy minister said supplies to European consumers could begin in March 2028, and that a clause in the agreement allows about one-fifth of the volume to be directed toward meeting part of Egypt's domestic needs. March 2028 remains an earlier date put forward by the minister, while Eni set the arrival of the first gas to market during 2028 without specifying a month. With the main contracts signed, the next step is to carry out the well, offshore systems and transport pipeline work, according to the schedule targeting the start of supplies in 2028.