Cyprus has marked an important step towards commercial exploitation of its natural gas reserves, as Italian energy company Eni signed contracts worth up to $1.8 billion, about 1.61 billion euros, for development of the Kronos gas field in the country’s Economic Exclustion Zone on Monday.

The project, which will be realised in co-operation with the French company TotalEnergies, is aimed at launching production in the first half of 2028, Television broadcasts.

The agreements include design, supply with equipment, construction and installation of the infrastructure needed for gas extraction.

After production, gas will be transported to Egypt, where it will be processed through existing infrastructure, including objects related to the Zohr field, and then sent to the liquid natural gas plant in Damietta, where it will be exported to international markets, mainly in Europe.

The president of Cyprus, Nikos Christodouides, hosted a delegation of Eni, led by Guido Bruco, leader of the group’s global natural resources operations. After the meeting, the signing ceremony for the implementation of the project was held.

In a written statement, Christodoulides said agreements worth up to $1.8 billion and the prospect of first commercial exploitation of Cypriot gas constitute a strong vote of confidence in the country’s energy potential, of particular economic and geopolitical importance.

Brussels named the Kronos project a historic moment for Cyprus, as it is the first hydrocarbon development project in the country.

According to him, the field contains reserves estimated at more than three trillion cubic feet of natural gas, while production can reach up to 500 million cubic feet per day after operations are stabilised.

He stressed that Eni has been present in Cyprus since 2013 and that the transition of the project to the implementation phase is the result of more than a decade of investments in expertise, human resources and technology, as well as co-operation between Cyprus, Egypt, Annie and TotalEnergies.

This is our first development project in Cyprus and confirms our commitment to being a long-term partner in the country’s energy future, Bruco said.

The use of Egypt’s existing infrastructure is considered a key element of the project, as it is expected to lower development costs and cut the necessary time for building facilities.

Co-operation with Cairo creates a way to turn Krono reserves into a source of revenue, though, according to the Cypriot newspaper Philelefheros, revenues from the sale of gas are not expected to start immediately.

Several specialised companies have been involved in implementing the project. Baker Hughes will handle production underwater systems, Dalmatia with gas export pipelines and MEG transport, while Technip The FMC will implement works on flexible production lines.

McDermott will carry, install the sea and operate underwater pipelines and equipment, while Oceaneering will build key underwater control cables.

The CMHI company will build and install a floating control unit, Petrojet will build a new land gas pipeline in Egypt, between Zohr field and Dametta’s plant, while Saipem will provide drilling services on its ship Saipem 10,000.

Krono’s development is also seen as part of efforts to strengthen energy cooperation in the eastern Mediterranean.

Cyprus can secure gas, Egypt offers infrastructure for its processing and liquidation, Greece has a strategic position and energy connections towards Southeast and Central Europe, while Italy represents an important entry point at one of the biggest energy markets in the European Union.

These connections can create opportunities for new investments in infrastructure, trade expansion and development of alternative energy transport routes.

They take on special importance at a time when tensions in the Middle East and concerns about shipping through the Strait of Hormuz have increased attention to the security of energy supply.

However, the real contribution of Cypriot gas to Europe’s energy security will depend on the launch of production, export capacities, trade agreements and international market conditions.

Chronos exploitation does not automatically mean replacing supplies from the United States or Russia, but could add to Europe another source of supply.

Other gas projects are also being developed in the eastern Mediterranean. American giant Chevron follows talks on developing the Aphrodite field, in collaboration with Israeli company NewMed Energy and British Shell.

According to media reports, Shell has also reached an agreement to sell its share in this area to the Hungarian energy group MOL, with the completion of the transaction envisioned in early 2027.

For Cyprus, the Chronos project represents a step towards turning gas detection into commercial sources, while for the region, it could create another link in an energy corridor connecting the eastern Mediterranean with European markets. /Telegraphy/