Cyprus, Egypt sign deal to transport gas via subsea pipeline

Cyprus has signed an agreement with Egypt over the transport of natural gas between the two countries through a subsea pipeline.

The agreement was signed on Wednesday in Nicosia between the Minister of Energy, Commerce, Industry and Tourism of the Republic of Cyprus, Georgios Lakkotrypis, and the Minister of Petroleum and Mineral Resources of the Arab Republic of Egypt, Tarek El Molla.

Under the deal signed, gas from Cyprus’ exclusive economic zone would be transported via a subsea pipeline to a landing point in the Exclusive Economic Zone or onshore Egypt, either for domestic consumption or re-export.

The Cypriot government said that this is only one of a series of legal arrangements which will further support the sale of Cypriot natural gas to buyers in Egypt, provide certainty to investors and complement the relevant commercial discussions which are underway.

“Cooperation in the oil and gas sector between the two countries will further deepen the excellent relations between Cyprus and Egypt to the mutual benefit of the peoples of Cyprus and Egypt, and will also further unlock and promote the potential of the Eastern Mediterranean as a whole,” the Government of Cyprus said on Wednesday.

The two countries last year signed a memorandum of understanding to increase the 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.

In particular, the MoU authorized the Egyptian Natural Gas Holding Company (EGAS) and the Cyprus Hydrocarbons Company (CHC) Ltd to examine technical solutions for transporting natural gas, through a direct marine pipeline, from the “Aphrodite” field to Egypt.

Aphrodite is a gas discovery made by Noble energy offshore Cyprus in 2011. The field, located approximately 170 kilometers south of Limassol, was declared commercial in 2o15, however, it has yet to be developed. Delek Drilling, a partner in the project said in September last year that the field development plan had been submitted to the Cypriot government and was awaiting approval.

Offshore Energy Today Staff

Related news

List of related news articles