Arab Finance: Egypt's state-owned petroleum contractor Petroleum Projects & Technical Consultations Co (Petrojet) has secured key contracts for the development of Cyprus’ offshore Cronos natural gas field, including a 57-kilometer natural gas pipeline connecting the Zohr field facilities to the Damietta liquefied natural gas (LNG) plant, the Ministry of Petroleum and Mineral Resources announced in a statement.
Under the agreement signed during a ceremony in Nicosia, Petrojet will serve as the main contractor responsible for the engineering, procurement, and construction of the onshore pipeline, which will have a diameter of 36 inches.
The project will help integrate gas produced from the Cronos field into Egypt’s existing infrastructure for processing, liquefaction, and potential exports to international markets.
Nine agreements worth approximately $1.8 billion were signed during the event, involving international companies including Petrojet, Baker Hughes, Dalmine, Technip, McDermott, Oceaneering, China Merchants Heavy Industry, Saipem, and Tenaris.
Petrojet also secured an $11 million contract from US-based engineering and construction company McDermott to fabricate deep-water structures for the Cronos field, with a combined weight of approximately 900 tons.
The Egyptian company is expected to receive two additional fabrication work packages, potentially increasing the total weight of structures assigned to it to around 3,000 tons.
Alongside these contracts, Petrojet is preparing technical and financial proposals for further infrastructure needed to connect Cypriot gas production with the Zohr facilities and the Damietta LNG plant.
The contracts form part of broader energy cooperation between Egypt and Cyprus, aimed at utilizing Egypt’s existing gas transportation, processing, and liquefaction infrastructure to bring Eastern Mediterranean gas discoveries to international markets.
The Cronos field, operated by Eni in partnership with French energy company TotalEnergies, is located in Block 6 offshore Cyprus. The partners approved its development in July 2026, with production expected to begin in the first half (H1) of 2028.
