Egypt’s state-owned Petrojet has secured a pipeline contract valued by industry sources at $170mn and a separate $11mn offshore fabrication award for Cyprus’s Cronos gas development, expanding Egypt’s commercial role in exporting Eastern Mediterranean gas to Europe.
Egypt’s Petroleum Ministry confirmed on November 3 that Petrojet would design, procure and construct a 57km, 36-inch onshore pipeline connecting the Zohr gas facilities to the Damietta liquefied natural gas (LNG) terminal. Industry publication MEED reported the pipeline’s $170mn valuation on November 2; the ministry did not disclose a contract price.
The agreement was signed in Nicosia on October 26 as Italy’s Eni launched the execution phase of the Cronos development, following a July investment decision. The broader project involves contracts worth up to $1.8bn.
Petrojet also secured an $11mn subcontract from McDermott to fabricate 900 tonnes of subsea structures. Two additional packages could increase its fabrication workload to approximately 3,000 tonnes, although these remain prospective.
Cronos, operated by Eni alongside TotalEnergies, holds more than 3tn cubic feet of gas initially in place. Production is targeted for the first half of 2028, potentially reaching 500mn cubic feet per day.
Gas will travel through a separate subsea pipeline to Egypt, undergo processing through existing Zohr infrastructure and be liquefied at Damietta, primarily for European markets.
For Egypt, Cronos presents two commercial opportunities: immediate engineering and fabrication contracts, followed by potential longer-term revenues from gas processing, transportation and liquefaction.
The project could also help restore sustained Egyptian LNG exports by bringing additional gas supplies through existing infrastructure. The ultimate economic benefit will depend on timely completion, export volumes and the commercial terms governing Egypt’s infrastructure services.
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