Egypt, Cyprus Sign Gas Related MoU

Cyprus and Egypt signed a MoU pertaining to cooperation in the field of oil and natural gas, Egypt’s ministry of petroleum said in a statement.

The agreement, signed by Egyptian petroleum minister Sherif Ismail and Cypriot energy minister Yiorgos Lakkotrypis on Monday in Cairo, aims to promote cooperation between the two countries in the field of development and exploitation of the discovery of Aphrodite gas. It is the follow-up to the meeting which was held in Nicosia on November 25, 2014 between the two countries.

The ministry statement said that technical solutions to transport gas through a direct sea pipeline from Aphrodite field to Egypt would be examined.

Ismail said in November that Egypt is looking to import Cypriot gas both for domestic use and for possible re-export to other countries. The North African nation is reeling under severe gas shortage due to falling domestic production amid rising usage. In recent months, Cairo has signed deals to source gas from various sources.

In December, Algeria and Egypt signed a previously announced natural gas deal. As per the deal Algeria will supply 850,000 cubic meters of LNG in six shipments to Egypt during 2015. The two countries will begin fresh talks shortly regarding supply of Algerian gas during 2016-2020, the ministry said adding that negotiations will start in Cairo and will be completed by February in Algiers.

Cairo is also expected to sign a deal to import LNG from Gazprom. Egypt is likely to buy 35 shipments of LNG over the next five years from the Russian company. Shell is another company likely to begin supplying gas to Egypt this year.

Earlier this month reports Platts quoted Shell's Middle East and North Africa region vice president, Mounir Bouaziz, as saying that the company will supply Egypt with 1 million mt/year of LNG, starting this year.

Egyptian Natural Gas Holding Co (EGAS) has also signed a contract with Trafigura to import LNG.