Agreement may bring Cypriot gas to Europe

TotalEnergies and ENI have taken a significant step towards unlocking the potential of Cyprus’ offshore Block 6 by signing a Host Government Agreement (HGA) with the governments of Egypt and Cyprus. This agreement, finalized during the Egypt Energy Show (EGYPES), marks a key milestone in the development of the Cronos gas field, located within Cyprus Block 6.

Under the agreement, which was signed by Egypt’s Minister of Petroleum and Mineral Resources, Karim Badawi, and Cyprus’ Minister of Energy, Commerce and Industry, George Papanastasiou, the Cronos gas field, discovered in 2022 and successfully appraised in early 2024, will be developed with a clear framework for production. The gas will be processed using Egypt’s existing Zohr facilities before being liquefied at the Damietta LNG plant in Egypt for export to European markets.

The Damietta LNG facility in Egypt. (Image: Hassan Allam Holding)

This collaboration opens a vital export route for Cyprus’ natural gas, leveraging Egypt’s established LNG infrastructure to meet the growing energy demands in Europe. As Europe looks to diversify its energy supply, the additional LNG volumes from the Cronos field will play a significant role in enhancing energy security.

Julien Pouget, Senior Vice President of Middle East & North Africa, Exploration & Production at TotalEnergies, expressed enthusiasm about the agreement: “We are very pleased to be part of the opening of an export route through Egypt for Cyprus gas. This Host Government Agreement represents a major step in valorizing Cyprus’ gas resources through available LNG capacities in Egypt, contributing to Europe’s energy security by bringing additional LNG volumes.”

This agreement sets the stage for the Block 6 partners, TotalEnergies and ENI, to proceed with the Cronos Development and Production Plan, working closely with Cypriot authorities to advance the project. The development aligns with TotalEnergies’ ongoing commitment to expanding its footprint in the Eastern Mediterranean, where it also holds interests in Block 11 (50%, operator), Block 7 (50%, operator), and Block 8 (40%) in Cyprus.

The Cronos field development is poised to play a key role in meeting Europe’s energy needs, highlighting the strategic importance of regional cooperation between Egypt, Cyprus, and energy companies like TotalEnergies and ENI.