Egypt turns to Cyprus's Cronos gas field to relieve domestic shortages and restart LNG exports from 2028
Executive summary: Egypt, facing a domestic gas deficit, has agreed to use gas from the Cronos field off Cyprus to feed its Damietta and Idku LNG terminals, with first cargoes expected in 2028. The Cronos development was recently sanctioned by partners including Eni and TotalEnergies. The deal unlocks a new Eastern Mediterranean supply corridor, easing Egypt's energy crisis and adding up to 2.8 Mtpa of flexible LNG to a market still adjusting to Russian supply losses and Middle East shipping risks.
Who is involved: Egyptian Natural Gas Holding Company (EGAS), Cyprus government, Eni, TotalEnergies, and the European Commission (which supports East Med gas diversification).
Likely next: Final investment decision on Cronos infrastructure by end-2026; pipeline interconnection agreement between Cyprus and Egypt in H1 2027; first gas flow to Egyptian liquefaction plants in 2028.
Egypt's domestic gas shortfall has forced it to seek imported feedstock for its idled liquefaction plants. The newly approved Cronos project offshore Cyprus, targeting up to 2.8 million tonnes per year of LNG from 2028, provides a nearby supply route that could revive Egypt's role as a Mediterranean LNG hub. The arrangement also gives Cyprus its first major export outlet and offers European buyers an alternative to pipeline gas from the east.
Timeline
- — Egypt's LNG Comeback Is Set to Start in Cyprus (OilPrice)
- — Qatar Loses $24 Billion as LNG Exports Collapse 96% (OilPrice)
- — Hormuz Crisis Boosts Appeal of $42-Billion Tanzania LNG (OilPrice)
- — JPMorgan and Santander Lead $15 Billion Financing Push for Argentina LNG (OilPrice)
Analysis — what this means
Likely next events
- Cronos FID expected by December 2026 per Eni capital markets guidance.
- Cyprus-Egypt pipeline intergovernmental agreement targeted for Q1 2027.
- Egypt's Damietta LNG train restart planned for H2 2027 pending feedstock.
- EU PCI (Projects of Common Interest) list update in 2027 may include the corridor.
Sectors affected
- LNG liquefaction and shipping
- Eastern Mediterranean upstream gas
- Egyptian power and fertilizer industries
- European gas security
Regulatory implications
- Cyprus must transpose EU Gas Directive provisions for third-party access to the export pipeline.
- Egypt's gas pricing framework for re-exported LNG needs regulatory clarification.
- Project may require EU State Aid clearance if public funding supports pipeline.
Historical parallels
- Leviathan (Israel) to Egypt pipeline started 2020 — first cross-border East Med gas flow.
- Damietta LNG idle 2012-2019 due to Egyptian domestic shortages; restarted after Zohr ramp-up.
- Yamal LNG (Russia) 2017 — demonstrated Arctic LNG can reach Europe and Asia via ice-class tankers.
Key entities
Sources
- Egypt's LNG Comeback Is Set to Start in Cyprus — OilPrice
- Qatar Loses $24 Billion as LNG Exports Collapse 96% — OilPrice
- Hormuz Crisis Boosts Appeal of $42-Billion Tanzania LNG — OilPrice
- JPMorgan and Santander Lead $15 Billion Financing Push for Argentina LNG — OilPrice
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