Eni: final investment decision for the Cronos project in Cyprus

Eni reached the Final Investment Decision (FID) for the development of Cronos project, located in deep waters offshore of Cyprus, with the aim of bringing the first Cypriot gas to the market in 2028. The project, operated by Eni, will allow the resources of the Cronos field, located in Block 6, which contains over 3 Tcf of gas initially in place (GIIP), to be brought into production. Production is expected to plateau at approximately 500 million standard cubic feet per day (mmscf/d). The gas will be transported and processed at the existing infrastructure in Zohr, Egypt, to be subsequently transferred and liquefied at the Damietta LNG plant and exported in the form of liquefied natural gas (LNG) to international markets, mainly European.

Descalzi: accelerated stage towards a gas hub in the eastern Mediterranean

“The Cronos initiative represents an accelerated and concrete stage in the path that will lead Cyprus to become a European producer and exporter of natural gas and paves the way for the creation of a regional gas hub in the Eastern Mediterranean, leveraging the existing energy infrastructure in Egypt”, said Eni’s CEO, Claudio Descalzi, commenting on the FID. “The project – he added – is also an example of international cooperation and provides a concrete contribution to the diversification and security of Europe’s gas supplies”.

What is Cronos

Cronos represents Eni’s first development in Cyprus and the first project in the country’s hydrocarbon sector. It constitutes an example of an integrated approach that enhances the synergies between new and existing infrastructures within a single development, allowing significant efficiencies in terms of costs, a reduction in environmental impact and a faster time to market. Cronos will enable the restart of the Damietta liquefaction plant, structurally restore LNG exports from Egypt and represents an important milestone in the expansion of Eni’s global LNG portfolio.

Through the marketing of 50% of LNG volumes produced, equivalent to approximately 1.4 million tonnes per annum (MTPA), Eni will increase its contracted LNG portfolio, in line with the strategic objective of exceeding 20 million tonnes per annum (MTPA) by 2030. The contractual agreements underlying the project define the methods of use of existing infrastructure in Egypt, including the Zohr facilities and the Damietta LNG plant, as well as the marketing of the LNG, creating the conditions for an execution timely implementation of the project. Eni has been present in Cyprus since 2013. Block 6 is operated by Eni with a 50% share, in partnership with TotalEnergies. In the country, Eni also operates Block 8 and holds interests in Blocks 7 and 11, operated by TotalEnergies.