Souzana Psara
Egypt’s gas sector is running short of domestic supplies just as Cyprus prepares to become a producer, with the recently approved Kronos project offering benefits to both countries and Europe, according to an OilPrice report.
Natalia Katona said that the project offers a three-way bargain, with up to 2.8 million tonnes of liquefied natural gas (LNG) a year expected from 2028. Cyprus gains an export route it cannot economically build alone, Egypt secures feedstock for infrastructure increasingly constrained by falling domestic production, and Europe gains another non-Russian source. However, the report cautions that technical, commercial and geopolitical risks could still derail the emerging corridor.
Egypt’s need for new gas sources is becoming urgent. Natural gas production fell 7 per cent year on year to 109.3m cubic metres a day in the second quarter of 2026, extending a decline that began after national output peaked in 2021. The deterioration remains concentrated in the offshore Mediterranean, while stronger production in the onshore Western Desert has been insufficient to reverse the trend.
