Cronos Gas from Cyprus to be transmitted to Damietta via Zohr Line
- Written by E.Tsiliopoulos
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Egypt and Cyprus have sealed a set of landmark commercial agreements that pave the way for the development of the Cronos gas field in Cyprus’s Block 6, marking a decisive step toward the project’s Final Investment Decision (FID), The deals allow natural gas from Cyprus to be processed and later exported through Egypt’s liquefied natural gas (LNG) facilities, reinforcing the latter’s role as the Eastern Mediterranean’s regional gas hub, according to the Middle East Economic Survey (MEES).
The agreements signed last week included a Handling, Transportation and Processing Agreement (HTPA) between Eni (50%, operator), TotalEnergies (50%), the Egyptian Natural Gas Holding Company (EGAS), IEOC (Eni’s Egypt subsidiary), and Petrobel, as well as a tolling contract (an agreement under which a company pays a fixed fee to use another party’s facilities) between Eni, TotalEnergies, and the Damietta LNG export facility, and a tariff agreement between the Block 6 partners and Egypt’s Ministry of Petroleum and Mineral Resources (MoPMR).
The HTPA regulates the movement of Cronos gas through Zohr’s offshore infrastructure, using one of the two 30-inch Zohr pipelines, with one of them exclusively dedicated to Cronos gas. The gas will be treated at Zohr’s onshore facilities before being routed—via a new pipeline yet to be constructed—directly to the 5 million t/y to Damietta LNG plant operated by Eni (50%). This route allows the gas to bypass Egypt’s national grid entirely.
According to a source from EGAS, the Cronos partners will pay a tolling fee slightly above or below $1/million British thermal units (Btu), depending on quantities, and a tariff of less than $0.5/mn Btu for Egypt’s infrastructure use and regulatory facilitation. The tolling contract governs liquefaction operations at Damietta, while the tariff agreement defines Egypt’s share from hosting and supporting the project.
Eni’s push to accelerate the project stems partly from the declining output at the Zohr field, currently at 1.3 billion cubic feet per day (bcf/d). This is around 59% below its 3.2 bcf/d capacity. Eni is the main operator of Zohr, Egypt’s largest natural gas field and one of the biggest ever found in the Mediterranean.
Discovered in 2022 and estimated to hold around 2.5 trillion cubic feet (tcf) of recoverable gas, the Cronos field will help offset that decline and strengthen regional supply security. Once operational, the project will facilitate direct LNG exports to Europe, aligning with EU diversification goals.
The commercial agreements between Egypt and Cyprus were signed on the sidelines of the Eastern Mediterranean Energy Conference and Exhibition (EMC 2025) held in Limassol, on 20-21 October
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