Egypt and Cyprus pledge closer coordination on Mediterranean gas projects using Egyptian export infrastructure

Egypt and Cyprus have pledged closer coordination to advance offshore natural gas projects, including the Cronos and Aphrodite fields, as both countries seek to use Egyptian infrastructure to process and export Cypriot gas, Economy Plus reported on October 7.

Egyptian Minister of Petroleum and Mineral Resources Karim Badawi and Cypriot Minister of Energy, Commerce and Industry Michael Damianos discussed the projects on the sidelines of an East Mediterranean Gas Forum (EMGF) roundtable in Athens, Greece. The talks formed part of broader regional discussions involving Greece.

No new final investment decision or binding development agreement was announced following the Athens meeting, which follows talks between the two ministers in June on the sidelines of the EMGF’s 10th ministerial meeting in Washington. Badawi said then that Egypt was ready to help conclude the remaining commercial and contractual arrangements needed for Aphrodite’s final investment decision.

The Cronos field, located in Block 6 of Cyprus’s exclusive economic zone, contains more than 3 trillion cubic feet of gas initially in place, according to operator Eni (BIT: ENI; NYSE: E). The Italian company is developing the project in a 50:50 partnership with France’s TotalEnergies (EPA: TTE; NYSE: TTE).

The 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. The two governments then signed a framework agreement on March 30, 2026, on the sidelines of the Egypt Energy Show, bringing Cronos and Aphrodite under a single arrangement.

The partners reached a final investment decision (FID) on July 28, 2026, with first gas targeted for 2028. Plateau production is projected at approximately 500mn cubic feet per day, equivalent to around 2.8mn tonnes of liquefied natural gas (LNG) annually, according to the developers.

Gas from Cronos is expected to be transported to Egypt through subsea infrastructure, processed using existing facilities associated with the Zohr gas development and liquefied at the Damietta LNG terminal, potentially for export to European markets.

Eni chief executive Claudio Descalzi said 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 also highlighted the use of Egypt’s existing infrastructure to support a new regional gas hub.

The Aphrodite field, operated by Chevron (NYSE: CVX) in Block 12, has a best estimate of 3.7 trillion cubic feet of contingent gas resources, according to an assessment commissioned by partner NewMed Energy and published in March 2026.

Cyprus approved a revised development plan for Aphrodite in February 2025. NewMed Energy said in April 2026 that a term sheet had been initialled for the sale of all the field’s recoverable gas to the Egyptian Natural Gas Holding Company (EGAS) for up to 15 years, extendable by five, with peak contracted supply of around 700mn cubic feet per day. Gas would reach an onshore terminal at Port Said through a new subsea pipeline.

The field’s partners, the Cyprus Hydrocarbons Company and EGAS then signed a memorandum of understanding in July 2026 covering the sale of the field’s gas to EGAS.

Commercial arrangements remain under negotiation, and Aphrodite has yet to reach a final investment decision. Cypriot officials have identified 2027 as a target, with production potentially beginning around 2031, subject to outstanding commercial and regulatory agreements.

The project also faces unresolved negotiations between Cyprus and Israel over the Aphrodite–Ishai reservoir, which extends across their maritime boundary. Damianos said in late September that the governments aimed to conclude an agreement by the end of October.

Ownership of Aphrodite is also changing. Hungary’s MOL Group agreed in July to buy Shell’s 35% non-operated stake for up to $720mn, with completion expected in early 2027. Chevron holds 35% and NewMed Energy 30%.

A third set of Cypriot discoveries was also on the agenda. The ministers reviewed a memorandum of understanding signed in May 2026 between Egypt, ExxonMobil (NYSE: XOM) and state-owned QatarEnergy to examine options for developing and commercialising separate Cypriot gas discoveries using Egyptian infrastructure.

The agreement concerns the Glaucus and Pegasus discoveries in Cyprus’s Block 10 and provides a framework for evaluating commercialisation options rather than a binding investment commitment.

ExxonMobil and QatarEnergy signed a declaration of commerciality with Cyprus for Glaucus and Pegasus on June 30. ExxonMobil operates the block with 60%, and QatarEnergy holds 40%.

Egypt’s efforts to attract Cypriot gas come as declining domestic production has increased its dependence on imports. The country imported 985bn cubic feet of gas in the year to June 2026, and its output averaged under 4.4bn cubic feet per day, with a further fall to 4.2bn expected in the current fiscal year, Reuters reported in July, citing official documents. The agency also reported that Cairo was negotiating multiyear LNG supply contracts potentially costing $8bn–$11bn annually.

Additional Cypriot production could eventually provide feedstock for Egypt’s existing processing and LNG facilities, although the volumes available for export will depend on project schedules, domestic gas demand and commercial arrangements.