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Italian energy company Eni signed contracts on Monday for subsea infrastructure and pipelines to transport gas from its offshore Greek Cyprus Cronos field to Egypt, where it will be liquefied and shipped primarily to Europe, with production expected to begin in 2028.
The contracts cover infrastructure needed to extract and process gas from the eastern Mediterranean field before sending it to Egypt for liquefaction and export.
Eni plans to transport gas through subsea pipelines connected to infrastructure near Egypt's Zohr field before sending it to an onshore processing facility. The gas will then move to Egypt's Damietta LNG plant, where it will be cooled into liquid form and loaded onto ships.
The Cronos field contains more than 3 trillion cubic feet of gas initially in place, with production expected to reach a plateau of 500 million standard cubic feet per day. Output could rise further as additional wells are drilled, Eni Chief Operating Officer Guido Brusco told the Wall Street Journal.
The infrastructure could also open up opportunities for other companies developing gas fields in the eastern Mediterranean, allowing them to use Eni's pipeline network to transport their output to Egypt.
"This project offers a platform for future developments," Brusco said in an interview.
The project entered its construction phase as conflict in the Middle East roiled global gas markets and Europe sought to secure alternative supplies.
Europe has become more reliant on U.S. liquefied natural gas shipments, while Qatar's production facilities remain damaged following Iranian attacks earlier this year. Gas produced closer to Europe could help diversify supplies and reduce exposure to disruptions.
"We all want to diversify our portfolio," Brusco said, describing the eastern Mediterranean as a "very premium geography."
Other companies are also pursuing offshore gas projects in the region. U.S. energy major Chevron is in talks to advance the Aphrodite field offshore Greek Cyprus, which it co-owns with Israel's NewMed Energy and Britain's Shell.
Shell has agreed to sell its stake to Hungary's MOL Group, with the deal expected to close in early 2027.
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