TotalEnergies and ENI Partner with Cyprus and Egypt for Gas Export
Cairo, Monday, 17 February 2025.
The agreement enables gas export from Cyprus’ Block 6 via Egypt to Europe, leveraging existing Egyptian infrastructure, and boosting Cyprus as a gas hub in the Eastern Mediterranean.
Strategic Partnership Details
On February 17, 2025, TotalEnergies and ENI formalized a Host Government Agreement (HGA) for gas export from Cyprus Block 6 in the presence of Egyptian President Abdel Fattah El-Sisi and Cypriot President Níkos Christodoulídis [1]. The agreement centers on the Cronos gas field, which was discovered in 2022 and appraised in February 2024, with estimated gas reserves exceeding 85 billion cubic meters [3]. The signing ceremony took place during the Egypt Energy Show (EGYPES), marking a significant milestone in Eastern Mediterranean energy cooperation [1][3].
Infrastructure and Export Strategy
The development plan involves processing gas from the Cronos field at Egypt’s Zohr facilities and liquefying it at the Damietta LNG plant for export to European markets [1][3]. This strategic approach leverages Egypt’s existing infrastructure, which industry experts consider crucial for regional development [3]. ENI, which holds a 50% stake in both Block 6 and the Damietta LNG plant, brings substantial operational experience to the project, having maintained a presence in Egypt since 1954 with current production of approximately 280,000 barrels of oil equivalent per day in 2024 [3].
Market Impact and Company Positions
The partnership brings together two energy giants with distinct market positions. TotalEnergies, with a market capitalization of 142.16 billion, demonstrates stronger financial metrics compared to ENI’s 49.56 billion market cap [4]. TotalEnergies shows superior performance with a net margin of 7.34% compared to ENI’s 2.76%, and higher return on equity at 15.22% versus 11.03% [4]. This collaboration leverages both companies’ strengths, with TotalEnergies’ global presence across approximately 120 countries [1] and ENI’s established infrastructure in Egypt [3].
Future Implications
This agreement positions Cyprus as an emerging gas producer and exporter while strengthening Egypt’s role as a regional energy hub [3]. The project also includes potential additional resources under exploration, including the Zeus discovery made in 2022 [3]. With Europe seeking to diversify its gas supplies, this development represents a significant step toward enhancing energy security and supply competitiveness in the region [3]. The partnership’s success could set a precedent for future regional energy cooperation initiatives in the Eastern Mediterranean.