Cairo: Egypt, Cyprus, and Italian energy company Eni signed a Host Government Agreement (HGA) in Cairo to develop and export gas from Cyprus’ Cronos field to European markets using Egypt’s infrastructure.
According to State Information Service Egypt, the signing ceremony was chaired by President Abdel-Fattah El-Sisi and his Cypriot counterpart Nikos Christodoulides during the opening of the Egypt Energy Show (EGYPES 2025). This agreement is a crucial step in establishing a gas hub in the Eastern Mediterranean, utilizing Egypt’s existing hydrocarbon infrastructure and positioning Cyprus as a gas producer and exporter.
The agreement outlines a structured plan for the swift development of the Cronos gas discovery off the coast of Cyprus. The extracted gas will be transported to Egypt for processing at the Zohr field facilities and liquefied at the Damietta LNG plant before being exported to European markets.
The Cronos gas field, located in Block 6 of Cyprus’ Exclusive Economic Zone (EEZ), was discovered in 2022 and appraised in 2024. It contains over three trillion cubic feet of gas. Eni, operational in Cyprus since 2013, holds a 50 percent stake in Block 6 and is also involved in Blocks 7, 8, and 11.
The agreement was signed by Karim Badawi, Egypt’s minister of petroleum and mineral resources; George Papanastasiou, Cyprus’ minister of energy, commerce and industry; and Eni’s CEO Claudio Descalzi.
Eni’s CEO Descalzi remarked that the agreement enables the rapid commercialization of Cyprus’ gas resources, which bolsters energy security and supply competitiveness. He noted that the project capitalizes on Egypt’s existing infrastructure, including its export facilities, which are vital for regional energy developments.
Descalzi also pointed out that Egypt and Cyprus are reaffirming their roles within the burgeoning Eastern Mediterranean energy hub, anticipated to significantly impact the global gas market moving forward.
Earlier on Monday, President El-Sisi inaugurated the eighth edition of the EGYPES 2025 conference and exhibition, which will continue until 19 February in Cairo.
Source: State Information Service Egypt