Eni lines up up to $1.8bn Cronos gas contracts

Italian energy major Eni is reportedly set to sign contracts worth up to $1.8 billion in the coming days to develop subsea and drilling infrastructure for the Cronos gas discovery in Cyprus’ Exclusive Economic Zone. The planned agreements, covering subsea facilities and pipelines, are reportedly estimated at between $1.3 billion and $1.8 billion and could be signed as early as Monday, 26 October.

The contracts will support the construction of subsea installations needed to extract, process and transport gas from Cronos. These facilities form the backbone of the field’s development plan, enabling connection to existing regional infrastructure and laying the groundwork for long-term output.

The Cronos development foresees gas being transported from offshore Cyprus by subsea pipeline to Egypt, using infrastructure linked to the Zohr field. From there, the gas would be routed to the Damietta liquefied natural gas terminal, where it can be liquefied and exported to other markets, including Europe.

Production from Cronos is reportedly targeted to begin in 2028. Once the project reaches full planned capacity, output is reportedly 500 million cubic feet of gas per day.

Development rights for the Cronos field are held by Eni and France’s TotalEnergies, with Eni acting as operator. The two companies decided in July to proceed with the project and to prioritise its rapid development, taking a final investment decision on the next steps. The upcoming subsea contracts represent a key implementation phase following that decision.

US energy services firm Halliburton (HAL.DE) has already secured a contract for drilling or well construction work on Cronos. Engineering group McDermott has been selected for subsea work valued between $500 million and $750 million, forming a substantial portion of the overall subsea development package. These awards sit within the broader set of contracts Eni is preparing, which together are reported to total up to $1.8 billion and underpin the field’s move toward first gas in 2028.

The prospect of signing contracts of this scale is seen as a significant step for Cyprus’ efforts to shift from offshore gas discoveries to commercial production. Subsea infrastructure and export pipelines are critical elements in tapping the Cronos resource and integrating it into regional energy networks. By tying the field into Egyptian infrastructure and the Damietta LNG terminal, the project links Cyprus’ upstream potential with established export routes to international markets.

In parallel with the Cronos work, Eni has been advancing growth projects more broadly, including gas developments in Egypt, reinforcing the company’s regional natural gas focus. For Cyprus, progressing Cronos through these contracts would represent concrete momentum in the country’s wider energy strategy, even though current plans provide for the gas to be transported to Egypt and exported rather than directed to the domestic market.