CYPRUS — TotalEnergies and Eni made a final decision last month to proceed with developing the Cronos natural gas field off Cyprus’ southern coast. European consumers can expect natural gas from an undersea deposit off Cyprus to help meet their energy needs as early as March 2028.

The Cronos project will be the first time gas from east Mediterranean deposits is supplied to European markets. Michael Damianos, the energy minister of Cyprus, said the development provides a strategic alternative for the continent. "It’s important for Europe at this time because of the war in Ukraine, because of this situation in the Middle East, that Cyprus is going to be an alternative source of gas," Damianos said.

Work on a pipeline from Cronos to existing infrastructure at Egypt’s Zohr natural gas deposit will begin later in 2026. The Zohr natural gas deposit is located 105 kilometers (65 miles) from the Cronos field. Construction of the pipeline from Cronos to Zohr is expected to take up to 18 months to complete.

Gas from the Cronos field will be conveyed to the Damietta processing facility on Egypt’s northern shore. Gas at the Damietta facility will be liquefied for transport by ship to Europe. Piping Cronos gas to Egypt for processing is estimated to cost roughly $2 billion (1.73 billion euros). The cost of piping Cronos gas to Egypt is approximately half the estimated cost of developing other gas fields inside Cypriot waters.

The agreement for the Cronos field stipulates that more than 3 trillion cubic feet (tcf) of gas is designated for Europe. A clause in the Cronos deal allows about a fifth of the gas to be used to cover some of Egypt’s domestic energy needs. Egypt is classified by the World Bank as a lower middle income economy with its capital in Cairo.

Damianos noted that the financial returns for Cyprus would be limited relative to the strategic value of the project. "It’s a small reserve. Our income as a country is not going to be huge, so its importance is not the money, its importance the commencement of being a producer and having first gas," he said. Cronos is one of six natural gas deposits discovered so far inside Cyprus’ Exclusive Economic Zone off its southern coastline.

The European Union has committed $760 million (658 million euros) for the Great Seas Interconnector project. The European Union is a political and economic union of 27 European states. "It’s a very important project for Europe because it connects Cyprus which is isolated to the European grid. And the idea is to then proceed and connect to Israel," he said.

Other developments in Cypriot waters are proceeding on separate timelines. The Aphrodite natural gas field holds an estimated 5.6 tcf of gas. The Aphrodite field was the first natural gas field found off Cyprus, discovered approximately 15 years ago.

A final decision by a Chevron-led joint venture to develop the Aphrodite field is expected in the summer of 2027. A pipeline will link the Aphrodite deposit directly to Egyptian facilities to supply Egypt’s domestic energy needs, according to an agreement with Chevron.

ExxonMobil and QatarEnergy are licensed to develop the Glaucus and Pegasus fields. The Glaucus and Pegasus natural gas deposits jointly hold an estimated 6.9 tcf of gas. ExxonMobil and QatarEnergy expect gas from Glaucus and Pegasus to start flowing by 2033. ExxonMobil plans to expand its exploration activities off Cyprus and is expected to receive an additional license to search for hydrocarbons off Cyprus.

Damianos expressed confidence in the operational reliability of major international partners involved in these projects. "What we can say that Exxon is the type of company that sticks by the timelines and sometimes delivers even earlier," he said.

The Cronos decision establishes a new supply route for European energy markets at a time of regional instability. By linking Cypriot reserves to Egyptian liquefaction infrastructure, the project bypasses the need for direct pipelines to Europe in its initial phase. This arrangement allows Cyprus to enter the global gas market while leveraging existing facilities in Egypt, a lower middle income economy in North Africa.

The allocation of more than 3 tcf of gas to Europe represents a significant volume for a region previously unable to export to the continent. The inclusion of a clause dedicating a portion of the gas to Egypt’s domestic needs ensures local support for the infrastructure usage. Concurrent investments in the Great Seas Interconnector aim to physically integrate Cyprus into the wider European grid, potentially enabling future direct connections to Israel and other Mediterranean producers.

Why It Matters

The Cronos project establishes the first supply route for east Mediterranean gas to reach European markets, offering a strategic alternative during regional instability. By utilizing existing Egyptian infrastructure, the development costs approximately half that of other Cypriot fields while designating over 3 trillion cubic feet of gas for Europe. This initiative marks Cyprus' entry as a gas producer and initiates broader efforts to connect the island to the European grid.