Egypt's Damietta LNG Terminal Hit by Drone Strike Amid Cronos Gas Project

A US-owned liquefied natural gas vessel at Egypt's Mediterranean port of Damietta was hit by a drone on July 29, triggering a fire that spread to an adjacent ship. The attack marked the first time Egyptian soil has been targeted since the US-Iran war began in February.

The Energos Winter, a floating storage and regasification unit, was struck on its starboard side by what is believed to be a drone with a reduced warhead. Both crews were evacuated without injury or fatalities. The cause of the fire has been confirmed as a drone strike by Egypt's Cabinet and British maritime security firm Ambrey.

The attack came just one day after Eni and TotalEnergies took the Final Investment Decision to develop the Cronos offshore gas field in Cyprus's Exclusive Economic Zone, a project valued at over €10 billion. The Damietta LNG terminal is critical to this plan, serving as the export point for Cypriot gas destined for Europe.

The drone strike has raised concerns about the safety and security of Egypt's energy infrastructure, particularly given the country's role in Europe's efforts to diversify away from Russian pipeline gas. While the physical damage was limited, the attack has altered the risk calculus for anyone relying on Damietta as a supply route.