Cronos Gas Field: EU's New Energy Lifeline in Eastern Mediterranean

The European Union's reliance on foreign countries for gas and oil has left it vulnerable to global crises. The recent conflict between Russia and Ukraine highlighted this vulnerability, as imports from Moscow ceased and energy bills soared. Europe sought alternative markets but the damage was significant.

To mitigate this risk, Europe is building a new energy architecture in the eastern Mediterranean. This initiative has several advantages, including reduced exposure to major maritime bottlenecks in the Persian Gulf and the Red Sea. However, it also has limitations, particularly with regards to integrated control over the gas supply chain.

The Cronos field, located off the coast of Cyprus, is a key component of this new energy architecture. Eni and TotalEnergies have taken the final investment decision on the project, which will yield approximately 500 million cubic feet per day (5.2 billion cubic meters per annum) of gas. The gas will be transported via a pipeline to Egypt's offshore facilities at Zohr before being sent to Damietta for liquefaction.

The Egyptian option costs around $2 billion, half the cost of developing other fields in Cypriot waters. This will result in approximately 3.8 billion cubic meters per annum of LNG, marketed separately by Eni and TotalEnergies. The first production is expected in 2028.