Egypt’s LNG Comeback Is Set to Start in Cyprus
Egypt’s gas sector is running short of domestic gas just as Cyprus prepares to become a producer. The recently approved Cronos project offshore Cyprus (expected to deliver up to 2.8 million tonnes per year of LNG from 2028) offers a three-way bargain. Cyprus gains an export route it cannot economically build alone; Egypt secures feedstock for infrastructure increasingly constrained by falling…
Egypt's natural gas production has been declining, reaching a shortfall of over 75 million cubic meters per day by June 2026. This gap is being filled by LNG imports, with the Cronos project in Cyprus set to provide up to 2.8 million tonnes of LNG annually starting in 2028. Cyprus will benefit from having an export route it couldn't afford alone, Egypt will secure feedstock for its aging infrastructure, and Europe gains another non-Russian gas source.
However, technical, commercial, and geopolitical risks could still derail the emerging LNG corridor. Egypt's natural gas production fell 7% in Q2 2026, continuing a downward trend since 2021, while domestic consumption increased to 190 million m3/d in June, nearly equaling Egypt's entire current domestic output. The Cronos project in Cyprus, expected to produce 14.2 million m3/d, will provide feedstock, infrastructure revenue, and commercial flexibility for Egypt while offering Cyprus a chance to develop its gas industry.
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- Egypt’s LNG Comeback Is Set to Start in Cyprus finance.yahoo.com
