According to ServPRO, the agreement was signed on Wednesday, the 31st of August 2016 in Nicosia between Cypriot Energy Minister Yiorgos Lakkotrypis and Egyptian Petroleum and Mineral Resources Minister Tarek El Molla.
The two ministers issued a joint statement stating that the agreement relates to “the transport of natural gas via a direct subsea pipeline from the Exclusive Economic Zone of the Republic of Cyprus to a landing point in the Exclusive Economic Zone or onshore the Arab Republic of Egypt, either for domestic consumption or re-export.”
With regards to the agreement, Minister Yiorgos Lakkotrypis stated: “Today we signed an agreement which stipulates that the two countries will respect the provisions of any trade agreements that may take place.
Furthermore, he said: “We hope that this agreement will facilitate and expedite trade agreements, as I have said, creating a secure investment framework for the sale of natural gas from Cyprus to Egypt.”
Addressing the issue of how soon will the natural gas be transported to Egypt, it was stated that the recent projections of the field development plant indicate that the natural gas will begin to reach Egypt between 2020 and 2022 but discussions are held to quicken the process.
Minister Tarek El Molla stated that: “We are talking about Cyprus gas coming into Egypt to be sold in the market or for liquefaction to be resold as liquefied natural gas.”
The joint statement made by the two Ministers also highlight that: “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 people of Cyprus and Egypt, and will also further unlock and promote the potential of the Eastern Mediterranean as a whole.”
The agreement signed is an indicator of the positive bilateral relations between Cyprus and Egypt and shows that Cyprus is actively taking steps towards the exploration of its natural gas fields and actively support and promoted the operation of the hydrocarbons industry in the Eastern Mediterranean area.