Published by Global Banking and Finance Review
Posted on February 17, 2025
MILAN (Reuters) - Italian energy group Eni signed an agreement on Monday to export Cyprus' offshore gas via Egypt, hailing it as a "milestone" towards the creation of a gas hub in the eastern Mediterranean.
Under the agreement, which also involves TotalEnergies, gas from the Cronos Block 6 site will be processed at Egypt's Zohr facilities before being liquefied at the Damietta liquefied natural gas plant and exported to Europe, Eni said.
Eni and TotalEnergies each have a 50% interest in Cronos Block 6.
Discovered in 2022 and subsequently appraised in 2024, Cronos gas in place is estimated at more than 3 trillion cubic feet (TCF). Additionally, Block 6 encompasses further potential resources under exploration and appraisal, Eni said.
"This agreement paves the way to bring Cyprus' gas to the market in a timely fashion, contributing to energy security and competitiveness of energy supply," Eni CEO Claudio Descalzi said.
"This project leverages Egypt's existing infrastructure, including export facilities, which are a key enabler for developments in the region," he added.
Egypt had planned to become a major gas exporter after Eni discovered the Zohr offshore field in 2015, but Egypt's gas production has been falling since 2021, reaching a six-year low in 2024. Eni is now aiming to increase production there.
Eni also owns 50% of the Damietta LNG plant.
(Reporting by Cristina Carlevaro, editing by Alvise Armellini and Susan Fenton)
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