Cyprus and Egypt sign natural gas export agreement

On August 31, Cyprus Minister of Energy Yiorgos Lakkotrypis and Egyptian Minister of Petroleum Tarek El Molla signed an intergovernmental agreement regarding the transport of natural gas via a subsea pipeline. The agreement follows a Memorandum of Understanding signed between the two nations in February 2015. It establishes a legal and regulatory framework intended to facilitate future commercial contracts between energy companies. The project is primarily focused on exporting gas from the Aphrodite field located in block 12 of the Cyprus Exclusive Economic Zone. Minister Lakkotrypis stated that export operations are projected to commence between 2020 and 2022. While market conditions and low gas prices have led to some uncertainty regarding the exact timeline, both ministers emphasized the strategic importance of the deal. Tarek El Molla confirmed that Egypt remains committed to these imports despite the discovery of the Zohr gas field. The government of Cyprus plans to hold further consultations with industry stakeholders to expedite the process.