TotalEnergies and ENI secure deal for Cyprus gas export

PARIS & CAIRO - In a significant development for the Eastern Mediterranean's energy landscape, TotalEnergies (EPA:TTEF) and ENI (BIT:ENI) have signed a Host Government Agreement (HGA) with Egypt and Cyprus to export natural gas from Cyprus's offshore Block 6 through Egypt. This agreement was reached with the endorsement of the Egyptian President Abdel Fattah El-Sisi and the Cypriot President Níkos Christodoulídis.

The HGA, signed at the Egypt Energy Show, outlines the framework for processing gas from the Cronos (NASDAQ:CRON) field, discovered in 2022 and appraised in February 2024, in Egypt's existing Zohr offshore facilities. Subsequently, the gas will be liquefied at the Damietta LNG plant for export to European markets, representing a strategic move to enhance Europe's energy security.

With this agreement in place, TotalEnergies and ENI, each holding a 50% stake in Block 6 with ENI as the operator, will advance the Cronos Development and Production Plan in collaboration with Cypriot authorities. Julien Pouget, Senior Vice President Middle East & North Africa, Exploration & Production at TotalEnergies, expressed the company's satisfaction in establishing an export route for Cypriot gas through Egypt, thereby contributing additional LNG volumes to Europe.

TotalEnergies also holds interests in several other blocks in Cyprus, underscoring its commitment to the region's energy sector. The company, a global integrated energy producer, operates in approximately 120 countries with a focus on delivering reliable, affordable, and sustainable energy.

This agreement is based on a press release statement and is a key step towards leveraging the Mediterranean's gas reserves. It highlights the ongoing efforts to diversify energy sources and routes amidst the broader context of energy security concerns in Europe.

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