Cairo, Egypt. The governments of Cyprus and Egypt signed a framework agreement on Monday for the commercial development of natural gas, on the sidelines of the Egypt Energy Show in Cairo. Cypriot Energy Minister Michael Damianos said the agreement confirms the two countries’ intention to export Cypriot natural gas to Egypt.
Agreement and political context
Damianos said the agreement “reaffirms the strategic choice of the two states to export Cypriot natural gas to Egypt”. Presidential press office director Victor Papadopoulos described it as a tangible step that could help accelerate and conclude pending energy agreements related to the Aphrodite and Kronos gas fields.
Damianos said the agreement does not differ from a similar one signed in the past, but that it now includes Kronos and Aphrodite together regarding the intention to send the gas to Egypt. He said the agreement is mainly a political confirmation of an already chosen direction, adding that project implementation depends largely on the companies operating in the blocks.
Joint technical committee
Damianos said the agreement предусматриes the creation of a joint technical committee to negotiate the terms of natural gas sales. He said the committee will cover sales to Egypt or to Egyptian state-owned companies, operating at a technical level and examining both commercial and technical parameters.
He said the aim is to optimally use Cypriot hydrocarbons and cover part of Egypt’s energy needs. Damianos said Cyprus and Egypt are restating intentions regarding existing deposits in order to move them forward.
Pending investment decision
It had been hoped that Italian energy company Eni would confirm its final investment decision for the Kronos field, located in Block 6 of Cyprus’ exclusive economic zone, ahead of the Egypt Energy Show, but this had not happened.
What do you think this agreement could change for the development of the Aphrodite and Kronos gas fields?