Cyprus moved closer to its first natural gas production Monday after energy company Eni signed contracts worth up to $1.8 billion to develop the offshore Cronos field. The agreements mark the start of major construction and drilling work, with the country’s first commercial gas output expected in the first half of 2028.
The contracts were signed at the Presidential Palace in Nicosia in the presence of President Nikos Christodoulides, Energy Minister Michael Damianos and Eni executive Guido Brusco. They cover equipment, pipelines, offshore installation and drilling services needed to bring the field into operation.
Eni is developing Cronos with TotalEnergies, with each company holding a 50% stake. The partners approved the investment in July. The field, discovered in 2022 off Cyprus in the eastern Mediterranean, is estimated to hold more than 3 trillion cubic feet of gas initially in place.
Damianos said the signing moved the project beyond preparation. “The focus now shifts decisively from planning to implementation,” he said.
First natural gas production in Cyprus could begin in 2028
Plans call for four underwater production wells and output eventually reaching as much as 500 million cubic feet a day. That is a projected rate, not gas already being produced.
In Nicosia at #Cyprus, the EPCI contract for the Cronos gas field is being signed today, in the presence of ENI.
According to The Wall Street Journal, the contracts are worth up to $1.8 billion and cover subsea infrastructure to transport natural gas to #Egypt. pic.twitter.com/NKLEWSv6Gg— Makedon Akritas 🇬🇷🇨🇾🇪🇺 (@Makedon_Akritas) October 26, 2026
Baker Hughes, McDermott and Saipem are among the contractors involved in the development work.
Rather than build a new export terminal in Cyprus, the partners plan to send gas by pipeline to Egypt. It will be processed using existing facilities linked to the Zohr gas field, then shipped to the Damietta terminal for conversion into liquefied natural gas. Most exports are intended for European markets.
The route reflects agreements reached by Cyprus, Egypt and the developers in 2025. Using Egyptian facilities is expected to lower development costs and help move the gas to market sooner.
The $1.8 billion figure covers development contracts, not income already earned by Cyprus. Any government revenue will depend on production, sales and project costs.
Earlier gas discoveries remain undeveloped
The agreement is a turning point for an island that has spent years searching for a way to sell offshore gas. Cyprus discovered its Aphrodite field in 2011, but it remains undeveloped, with a separate export plan also tied to Egypt.
Cronos is further along, although its first production date remains a target. Contractors must still complete the wells and transport systems before any gas can be sold.
Cyprus officials say the project could strengthen ties with Egypt and give Europe another source of supply. For now, the latest agreements signal progress toward production rather than the start of exports.
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