Energy cooperation between Cyprus and Egypt for the exploitation of the “Cronos” natural gas field is entering its next stage, with technical and commercial agreements expected to be finalized in the coming weeks.

Responding to CNA questions, Energy, Commerce, and Industry Minister George Papanastasiou highlighted the significant progress following his meeting last week in Nicosia with Egyptian Minister of Petroleum and Mineral Resources Karim Badawi. The meeting coincided with the devastating wildfires that struck Limassol district.

The session, also attended by senior executives from Eni and TotalEnergies, was held under the Coordinating Committee for the development of the Block 6 field within Cyprus’s Exclusive Economic Zone (EEZ). Discussions focused on the progress of the Host Government Agreement, co-signed by the Republic of Cyprus, Egypt, and the investors Eni/Total.

According to Papanastasiou, this was a “first high-level contact” to set political directions and ensure the necessary support for the companies ahead of submitting the final Development and Production Plan for the field.

Major Cyprus–Egypt Gas Agreements by Mid-August

The Minister revealed that the core commercial agreements between the investors and Egypt are already shaping up. These cover the entire supply chain—from gas export to liquefaction at Egypt’s Damietta facility.

Additionally, a separate gas sales agreement between the Republic of Cyprus and the investors is in the works. A draft version has already been shared and is expected to be finalized by the end of August.

“September will be a month of consultations, aiming for a signing around October,” the Minister stated.

Investment Decision Targeted for Late 2025; First Gas in 2027

Meanwhile, Eni and TotalEnergies have submitted a draft Development and Production Plan for the “Cronos” field to the Republic of Cyprus for review. This plan covers both the technical aspects of field development and its commercial exploitation.

The companies aim to reach a final investment decision by the end of 2025—a “challenging but realistic” goal, according to Papanastasiou. He noted that this timeline requires prior tendering for all segments of the supply chain.

“This is a tight but achievable target,” he said, adding that if all goes according to plan, 2027 could mark the first gas flow from “Cronos.”

“The key point is that 100% of the gas is projected for liquefaction and export,” he emphasized.

Egypt Ready to Support New Regional Gas Corridor

As reported by Egypt Oil & Gas on July 27, Egypt’s Petroleum Minister reaffirmed the country’s readiness to fully support the project and remove any obstacles. He stressed that creating a new regional natural gas corridor is a shared goal, offering benefits to both countries and bolstering Europe’s energy security.

The report noted that the two Ministers also exchanged views on ongoing subsea surveys for the pipeline route to Egypt, as well as updates on the “Aphrodite” field, following the Memorandum of Understanding (MoU) signed in Cairo last February.

The next Coordinating Committee session is expected to be held in Cairo or Damietta, following an invitation by the Egyptian Minister to his Cypriot counterpart.

However, Papanastasiou indicated that another meeting between the Ministers and the companies is likely to take place earlier, on the sidelines of the Gastech international exhibition in Milan, scheduled for September 9–12, 2025. Both Ministers will be accompanied by their technical teams.