Cronos gas field: Eni signs the main contracts and Cyprus's first gas project enters execution (October 2026)
Eni has signed the main construction and drilling contracts for the Cronos gas field, moving Cyprus's first gas development into execution. Start-up is targeted for the first half of 2028.
At a glance#
| Item | Detail | Source |
|---|---|---|
| Event | Main engineering, procurement, construction and drilling contracts signed; execution phase launched | Eni, 26 Oct 2026 |
| Field | Cronos, Block 6, Cyprus Exclusive Economic Zone | Same |
| Partners | Eni (operator, 50%) and TotalEnergies | Same |
| Final investment decision | 28 Jul 2026 | Same; Cyprus Ministry of Energy, 26 Oct 2026 |
| Resources | More than 3 trillion cubic feet of gas initially in place (company estimate) | Eni |
| Plateau | Up to 500 million standard cubic feet per day | Eni |
| Start-up | Expected in H1 2028 | Eni |
| Contract value | Not disclosed by Eni; up to $1.8bn reported by Cyprus Mail | Cyprus Mail, 26 Oct 2026 |
What was signed#
On 26 October 2026 Eni said it had signed the main engineering, procurement, construction and drilling contracts for the Cronos project. A ceremony at the Presidential Palace in Nicosia was attended by President Nikos Christodoulides, Energy Minister Michael Damianos and Eni's chief operating officer for global natural resources, Guido Brusco (Eni release).
Eni lists the awarded scopes as:
- a floating control unit;
- transportation and installation;
- offshore sealines;
- the subsea production system;
- flexible lines and umbilicals;
- an onshore line EPC contract;
- drilling rig services.
Eni did not name the contractors or state a value. In his address at the ceremony, the minister said the contracts cover the main engineering, procurement, construction, installation and drilling work, and that "the focus now shifts decisively from planning to implementation".
Contractors and value (reported)#
Cyprus Mail reported on 26 Oct 2026 that the contracts are worth up to $1.8bn and named the contractors as Baker Hughes (subsea production systems), TechnipFMC (flexible flowlines), Saipem (drilling with the Saipem 10000 drillship), Dalmine, McDermott, Oceaneering, China Merchants Heavy Industry and Petrojet. The Cyprus News Agency had earlier reported official sources putting the cost of the infrastructure at $1.3bn–$1.8bn (CNA, via Cyprus Business Now). Neither the contractor list nor the value appears in Eni's release, so both remain press figures.
One contractor had already disclosed its award. On 8 September 2026 McDermott announced a subsea contract from Eni Cyprus for project management, engineering, procurement and installation, which it classed as "substantial", meaning $500m–$750m by its own definition (McDermott). We do not know whether that amount is included in the reported $1.8bn.
How the gas reaches market#
Cronos uses existing Egyptian infrastructure rather than new Cypriot onshore facilities. According to Eni, the gas will be piped to Egypt, processed through existing plants including the Zohr infrastructure, and liquefied at the Damietta LNG terminal for export, mainly to Europe. The minister described this as a way to avoid duplicating infrastructure and to speed up delivery.
The same route underpins Cyprus's second project, Aphrodite. Its financial framework agreement with Egypt was initialled on 20 October 2026, but no investment decision has been announced; see the energy investment signals note.
Why it matters for investors in Cyprus#
- First production. Eni calls Cronos the country's first hydrocarbon development. If the H1 2028 target is met, Cyprus becomes a gas producer and exporter.
- Local supply chain. Contract work of this size can create demand for port, logistics, marine and engineering services in Cyprus. No local content figures have been published.
- Public finances. Production would generate state revenue under the Block 6 production sharing terms. The government has not published revenue projections with the signing, and we do not estimate them.
- Execution risk. The timetable depends on subsea installation, drilling and the Egyptian processing and LNG capacity. The minister referred to the "timely resolution of outstanding issues" without listing them.
Macroeconomic context for Cyprus is in the Cyprus economy and property snapshot, and contract awards are logged in the deals tracker.
What this note does not do#
It does not value the project, forecast gas prices or production, or comment on any listed company named above. Figures are attributed to the company, government or outlet that published them.
Sources#
- Eni: Eni launches the execution phase of Cronos project (26 Oct 2026)
- Cyprus Ministry of Energy, Commerce and Industry: Minister's address at the Cronos signing ceremony (26 Oct 2026)
- Cyprus Mail: Eni signs $1.8bn contracts for Kronos gas field infrastructure (26 Oct 2026)
- CNA: Cronos development agreement signed at Presidential Palace (26 Oct 2026)
- Cyprus Business Now: Cronos infrastructure contract to be signed in Nicosia (26 Oct 2026)
- McDermott: subsea contract for the Cronos development (8 Sep 2026)