Egypt and Cyprus have signed an agreement regarding the transport of natural gas via a direct subsea pipeline from Cyprus to Egypt for domestic consumption or re-export.
The deal was by the Egyptian minister of petroleum and mineral resources, Tarek El Molla and the Cypriot minister of energy, commerce, industry and tourism, Georgios Lakkotrypis, according to a statement by the government’s press office.
The two countries have already signed a memorandum of understanding last year, aiming for cooperation in the development and exploitation of the Cypriot Aphrodite gas field in block 12 of Cyprus’ Exclusive Economic Zone, utilizing gas infrastructure existing in Egypt for the mutual benefit of the two countries.
Speaking to the reporters, following his visit to the Cypriot president, Nicos Anastasiades, El Molla said the gas coming from Cyprus to Egypt will be either sold on the domestic market or used for liquefaction. He added that commercial agreements are to follow soon, the press office statement reads.
It is expected that the gas could start flowing towards Egypt between 2020 and 2022, however, both ministers are looking to negotiate ways to expedite the delivery.
In regards to the Zohr discovery in Egypt, El Molla noted that it does not curb Egyptian interest in Cypriot gas as the market is big enough to facilitate the volumes.
Operated by Noble Energy, the Aphrodite gas discovery is approximately 170 kilometers south of Limassol and holds 4.5 trillion cubic feet of gas.
LNG World News Staff