Italian energy major Eni is expected to sign contracts worth up to $1.8 billion in the coming days to develop subsea gas infrastructure in Cyprus, The Wall Street Journal reported, in a story carried by Reuters. The planned contracts cover subsea drilling infrastructure and pipelines for the company’s offshore gas project in the Republic of Cyprus’ exclusive economic zone. Reuters said it could not independently verify the Journal’s report. The development is significant for Cyprus’ energy plans, since subsea installations and pipelines are critical to bringing offshore gas fields into production.
The Cronos field at the centre
According to the original Wall Street Journal report, published on Friday, 23 October, the contracts are estimated at between $1.3 billion and $1.8 billion and relate to the development of the Cronos field off Cyprus. Sources familiar with the plans told the Journal the agreements could be signed as early as Monday, 26 October. The project involves building subsea facilities to produce gas and transport it to Egypt, with production targeted to begin in 2028. Eni operates the field, in which it is partnered with France’s TotalEnergies, and the two companies approved its fast-tracked development in July 2026.
Cypriot gas to Europe via Egypt
A central element of the plan is the use of existing Egyptian energy infrastructure to cut costs and speed up development. According to The Wall Street Journal, gas from Cronos would be carried by subsea pipeline to Egypt, using infrastructure linked to the Zohr field, and then routed to the Damietta LNG liquefaction terminal, from where it could be exported to European markets. Relying on existing Egyptian facilities reduces the need to build new processing and liquefaction infrastructure in Cyprus and makes Egypt the central hub for the field’s commercial development.
The companies involved
The Journal reported that US company Halliburton has already secured a contract for well construction work on the project, while McDermott has been selected for a subsea contract valued at between $500 million and $750 million. The work forms part of the wider development plan for Cronos, which is estimated to hold more than 3 trillion cubic feet of gas. Once the project reaches full planned capacity, output could rise to 500 million cubic feet a day, according to The Wall Street Journal.
What it means for Cyprus
The prospect of the contracts being signed marks an important step in Cyprus’ efforts to move from gas discoveries to commercial production. The development of Cronos is tied to wider energy cooperation between Cyprus and Egypt and to the European Union’s drive to diversify its gas supply. If the timetable holds, 2028 could mark the start of commercial production from the field. The start of production would not, however, automatically mean gas for the Cypriot domestic market, since the current plan provides for the gas to be transported to Egypt and exported.
Source: The Wall Street Journal, Reuters
