Egypt yesterday signed an agreement with Cyprus to construct a maritime pipeline between the two countries, which will transfer of natural gas from Cyprus to Egypt for re-export to different markets, especially the European Union (EU) countries.
The agreement was signed in a meeting held in Cyprus between the Egyptian Minister of Petroleum and Mineral Resources, Tarek El-Molla, and the Cypriot minister of Energy, Industry, Tourism and Trades, Georgios Lakkotrypis.
The project, which was said to cost around $800 million, will involve building a pipeline to transfer natural gas from Cypriot Aphrodite field to Egypt's liquefied natural gas (LNG) facilities.
El-Molla said that the agreement contributes "to boosting the economic relations between Egypt and Cyprus and is considered as an important step in maximising the benefit of the discoveries of the Cypriot gas fields."
"The Egyptian-Cypriot agreement is not only about the implementation of a maritime pipeline, but it will contribute positively to securing gas supplies to the EU," he added.
The deal, El-Molla reiterated, will encourage further research exploration activities in the region and will contribute to further support joint cooperation in the field of oil and gas between the two countries.
Referring to another memorandum of understanding, which was signed between Egypt and the EU in the field of energy last April, the Egyptian minister stressed that it "will open up important prospects for the role that Egypt can play in the industry."
On his part, Lakkotrypis said that the deal was "an important milestone, not only for Cyprus but also the entire eastern Mediterranean region," adding that "it's [the joint agreement] the first of its kind in Cyprus and Egypt's shared region."