Cyprus's Cronos Project Set to Supply Egypt with Record-Breaking LNG Volumes

Cyprus's offshore Cronos project is set to become Egypt's new LNG supplier. The Cronos project, sanctioned by Eni and TotalEnergies in July 2026, aims to deliver up to 2.8 million tonnes of LNG per year starting in 2028.

The deal marks a significant shift for Cyprus, which has six major offshore discoveries but no commercial production yet. By partnering with Egypt, Cyprus gains an export route it couldn't afford alone and retains less value from each unit, while reducing capital expenditure and execution risk.

Egypt's gas sector is struggling to meet domestic demand due to declining production. Domestic consumption reached 190 million m3/d in June, the highest recorded level for that month, while power generation alone burned 113 million m3/d. This leaves a shortfall of more than 75 million m3/d before pipeline and LNG imports are counted.

The Cronos project will transport gas by pipeline to Egypt's Zohr facilities for processing and then to Damietta plant for liquefaction and export, primarily to Europe. While the volumes are modest, it's strategically useful for Europe as part of the 2022 memorandum between the EU, Egypt, and Israel, which explicitly envisages gas from these Eastern Mediterranean sources reaching Europe through Egyptian LNG infrastructure.

However, there are technical, commercial, and geopolitical risks that could derail this emerging corridor. Subsurface risk is a concern, and relying on Zohr and Damietta exposes Cypriot output to Egyptian outages, capacity constraints, and gas-treatment requirements.