Cyprus and Egypt lead new ‘Virtual EastMed’ gas corridor

A new energy corridor model, referred to as ‘Virtual EastMed’, is emerging in the Eastern Mediterranean to supply natural gas to European markets. Unlike the original plan for a 2,000-kilometer undersea pipeline connecting the Eastern Mediterranean directly to Greece, this model utilizes existing infrastructure in Egypt.

The process involves transporting gas from Cypriot fields via a 105-kilometer undersea pipeline to Egypt’s Zohr field, where it will be liquefied at existing facilities and exported to Europe as Liquefied Natural Gas (LNG).

The Krone gas field, located in Block 6 of Cyprus's Exclusive Economic Zone, is central to this initiative. Developed by Eni and TotalEnergies with a 50% stake each, the project received a final investment decision in July 2026. The total investment is estimated at $2.2 billion, with production scheduled to begin in the first half of 2028. The field is expected to have a production capacity of approximately 500 million cubic feet per day, equivalent to about 2.8 million tons of LNG annually.