Eni has reached the final investment decision (FID) to develop Cronos project, in deep waters offshore Cyprus, with the target to bring the first Cypriot gas to market in 2028.
The project, operated by Eni, will bring to production the gas volumes from Cronos field, in Block 6, which holds more than 3 trillion ft3 of gas initially in place (GIIP). Production is expected to reach a plateau of 500 million ft3/d; gas will be transported and processed in existing Zohr facilities, in Egypt, then transferred and liquefied in Damietta LNG plant for export as LNG to international markets, primarily Europe.
Eni CEO, Claudio Descalzi, commented: “Cronos fast-track initiative marks a concrete milestone in positioning Cyprus as a European gas producer and exporter and it unlocks the establishment of a regional gas hub in the Eastern Mediterranean by leveraging Egypt’s existing hydrocarbon infrastructure. It is furthermore an example of international co-operation and a concrete contribution to the diversification and security of Europe’s gas supply.”
Cronos is Eni’s first development in Cyprus and the country’s inaugural hydrocarbon project. It is an example of an integrated approach that leverages synergies between new and existing infrastructure within a single development, enabling significant cost efficiencies, minimised environmental impact and accelerated time to market. Cronos enables the restart of the Damietta LNG plant, will restore structural LNG exports from Egypt and represents an important milestone in the expansion of Eni’s global LNG portfolio. Through the marketing of 50% of the LNG volumes, equivalent to 1.4 million tpy, Eni will increase its contracted LNG portfolio supporting its strategic ambition to exceed 20 million tpy by 2030.
The project contractual agreements establish the terms for the use of Egypt’s existing infrastructure, including the Zohr facilities and the Damietta LNG plant, as well as the LNG commercialisation, providing the foundation for the timely execution of the project.