Egypt and TotalEnergies advance Cyprus Cronos gas connection project

Egyptian Petroleum and Mineral Resources Minister Karim Badawi held talks with TotalEnergies (LSE: TTE) executives on October 21 to accelerate the connection of Cyprus’s offshore Cronos gas field to Egyptian infrastructure and assess opportunities for further gas exploration investment, according to Economy Plus.

Badawi met Julien Pouget, TotalEnergies’ senior vice president for exploration and production in the MENA region, during the Mediterranean Offshore Conference (MOC 2026) in Alexandria. TotalEnergies' executive responsible for Egypt, Lebanon and Cyprus also attended.

According to the ministry, discussions covered implementation of the Cronos connection in cooperation with Italian operator Eni (BIT: ENI), alongside potential new gas exploration investments in Egypt. Badawi said the ministry was prepared to examine technical and commercial measures to reduce costs and improve the economics of prospective projects. He said political support from Egypt and Cyprus had helped advance coordination between governments and project partners.

Cronos lies in Block 6 offshore Cyprus and is operated by Eni, with a 50% stake alongside TotalEnergies, which holds the remaining 50%. The field was discovered in 2022 and appraised in 2024. The partners approved its development in July 2026, targeting first production in 2028.

Eni estimates the field contains more than 3 trillion cubic feet of gas initially in place. The project will involve four subsea wells and a pipeline transporting production to Egypt, where gas will be processed through existing Zohr field facilities before reaching the Damietta liquefied natural gas (LNG) terminal for export, primarily to Europe.

Plateau output is projected at approximately 500mn cubic feet per day, equivalent to about 2.8mn tonnes of LNG annually. TotalEnergies expects to market half of that LNG volume, or roughly 1.4mn tonnes per year. These are development targets rather than current production figures.

The partners' commercial arrangements cover access to Egyptian processing infrastructure, gas transit, liquefaction and LNG sales. Reusing established facilities is intended to reduce development costs and shorten the time from investment approval to commercial delivery.

During the Alexandria meeting, Pouget said TotalEnergies continued evaluating prospective exploration areas in Egypt. He emphasised the importance of technical data for assessing opportunities and supporting investment decisions. The ministry expressed readiness to support viable projects and explore measures to improve their economics.

The talks followed a separate October 20 milestone for Cyprus's Chevron-operated Aphrodite field, when Egyptian and Cypriot officials witnessed the initialling of a financial framework agreement. That arrangement advances negotiations on development and gas transportation but does not amount to a final investment decision.

Egypt is seeking to use its gas processing and LNG export network to commercialise Eastern Mediterranean discoveries while strengthening its position as a regional energy hub. For Cyprus, the Cronos project offers an established export route to European customers without the need to build a separate liquefaction plant.

The ministry announced no new financing, exploration licence or revised production timetable following the discussions in Alexandria.