Cyprus and Egypt have officially signed a cooperation agreement to enhance gas exports to Europe, a deal finalized on February 17th. The agreement involves an energy consortium of Italian and French energy giants, Eni and TotalEnergies, who will play a pivotal role in the project.
According to Cypriot officials, the deal centers around exporting gas from offshore fields surrounding Cyprus. The gas will be processed in Egypt before being shipped to Europe as liquefied natural gas (LNG). Specifically, Cypriot gas will be transported to Egypt, where it will be processed at the Zohr gas field facilities. From there, it will be sent to Egypt’s liquefaction plant in the port city of Damietta, and then exported to the European market.
Additionally, a Memorandum of Understanding was signed between Cyprus, Egypt, and energy companies Chevron Cyprus, NewMed Energy, and BG Cyprus. This agreement lays out a framework for the commercialization of natural gas from Cyprus’ Aphrodite gas field.
Since the Russian invasion of Ukraine three years ago, Europe has been seeking alternative natural gas sources to reduce its reliance on Russian energy. Cyprus, keen on becoming a significant energy player in the region, has been actively exploring and discovering gas reserves off its coast. However, the abundance of resources in these areas has sparked geopolitical tensions, particularly with neighboring Turkey, adding complexity to the situation.
