Cyprus and Egypt have pledged closer coordination to advance offshore natural gas projects, including the Cronos and Aphrodite fields, as both nations seek to utilize Egyptian infrastructure for processing and exporting Cypriot gas. Egyptian Minister of Petroleum Karim Badawi and Cypriot Minister of Energy Michael Damianos discussed the projects during an East Mediterranean Gas Forum roundtable in Athens on October 7.
Regional Hub Plans
The talks are part of broader regional discussions involving Greece and build on previous meetings between the two ministers in June. At that earlier gathering, Badawi stated that Egypt was prepared to assist in finalizing the commercial and contractual arrangements required for the final investment decision on the Aphrodite field.
Eni and TotalEnergies are developing the Cronos field, located in Block 6 of Cyprus’s exclusive economic zone. Gas from Cronos is slated to be transported to Egypt via subsea infrastructure, processed at facilities associated with the Zohr gas development, and liquefied at the Damietta LNG terminal for potential export to Europe.
The partners reached a final investment decision on July 28, 2026, with first gas targeted for 2028. Peak production is projected at approximately 500 million cubic feet per day, equivalent to around 2.8 million tonnes of liquefied natural gas annually. The agreement highlights the strategic benefit of linking Cyprus’ offshore reserves with Egypt’s processing capacity.
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The Italian company is developing the project in a 50:50 partnership with France’s TotalEnergies (EPA: TTE; NYSE: TTE). The Cronos project has advanced through a sequence of agreements over the past 18 months. Egypt, Cyprus, Eni and TotalEnergies signed a host government agreement in Cairo on February 17, 2025, followed in October 2025 by commercial agreements covering the transport, processing and liquefaction of Cronos gas in Egypt.
Extending Infrastructure Use
Eni chief executive Claudio Descalzi noted in July that the investment would help establish Cyprus as a gas producer and exporter while supporting an eastern Mediterranean gas hub using Egypt’s existing infrastructure. TotalEnergies has similarly highlighted the strategic use of Egyptian facilities to support a new regional hub.
The Aphrodite field, operated by Chevron in Block 12, contains a best estimate of 3.7 trillion cubic feet of contingent gas resources. NewMed Energy, a partner in the field, announced in April 2026 that it had initialed a term sheet for the sale of all recoverable gas to the Egyptian Natural Gas Holding Company for up to 15 years, extendable by five. Peak contracted supply is around 700 million cubic feet per day, with gas to be routed through a new subsea pipeline to an onshore terminal at Port Said.
Cyprus approved a revised development plan for Aphrodite in February 2025. Gas from the Glaucus and Pegasus discoveries in Block 10 is also being examined for development using Egyptian infrastructure. ExxonMobil operates the block with a 60% stake, and QatarEnergy holds 40%. The partners signed a declaration of commerciality with Cyprus on June 30, 2026.
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Egypt’s push to incorporate Cypriot gas comes as domestic production declines. The country imported 985 billion cubic feet of gas in the year to June 2026, while output averaged under 4.4 billion cubic feet per day, with a further fall to 4.2 billion expected in the current fiscal year. Cairo is reportedly negotiating multiyear LNG supply contracts that could cost between $8 billion and $11 billion annually.
Ownership of the Aphrodite field is also shifting. Hungary’s MOL Group agreed in July to purchase Shell’s 35% non-operated stake for up to $720 million, with completion expected in early 2027. Chevron holds the remaining 35% stake, and NewMed Energy holds 30%.
While a third memorandum of understanding was reviewed during the Athens meeting, it concerns a framework for evaluating commercialization options rather than a binding commitment. Officials have identified 2027 as a target for a final investment decision, with production potentially beginning around 2031, subject to regulatory approvals.
