Egypt, Cyprus Sign Pipeline Agreement

Cyprus and Egypt have signed an Intergovernmental Agreement (IGA) to develop a gas pipeline linking Cyprus and Egypt.

The agreement, signed September 19, paves the way for future Cypriot gas production to be monetised at Egyptian LNG export plants. 

Cyprus energy minister Georgios Lakkotrypis said September 19: "The signing of the IGA for a gas pipeline between Cyprus and Egypt is an important milestone for the creation of an East Med natural gas corridor to the EU, and strengthens the energy investment environment in our region."

The purpose of the agreement, he added, was to ensure development of a direct subsea pipeline designed to transport Cypriot natural gas, including from the Aphrodite field, to Egypt from where it would be re-exported to Europe in the form of LNG. 

To that end, a joint monitoring committee, composed of representatives of the energy ministries and regulatory authorities of both countries would be set up within the next 30 days, he added.

Egypt has indicated this month that it is ready to discuss the re-opening of the Damietta LNG export plant, shut for six years, and the ramp-up of the country's other such plant at Idku. 

Egypt's petroleum minister Tarek el Molla (left) and his Cypriot counterpart Georgios Lakkotrypis at the Sep.19 signing

(Credit for above and banner photos: Cyprus ministry of energy, trade, industry and tourism)