Gas pipeline deal with Egypt signed
EGYPT and South Cyprus on Wednesday signed an agreement for the construction of an underwater pipeline to export natural gas to Egypt.
The deal was signed at the presidential palace by energy minister Yiorgos Lakkotrypis and Egypt’s Oil Minister Tarek el-Molla.
Mr Lakkotrypis said the agreement aimed at ensuring the timely and safe development, construction, and operation of an underwater pipeline directly to Egypt through the two countries’ exclusive economic zones.
The agreement is meant to facilitate the mooted construction of a pipeline from the Aphrodite gas field, estimated to contain around 130 billion cubic metres of gas, onto Egyptian shores and then to the LNG facility in Idku.
It can also apply to other gas fields that may be discovered off the island in the future.
It has nothing to do with matters like the price at which the gas would be sold. This commercial aspect is strictly up to the companies owning the Aphrodite gas (Noble Energy, Delek, Shell) and the LNG plant in Egypt.
In the meantime, the companies with a stake in the Aphrodite play have demanded a revision of the revenue-sharing agreement with the Greek Cypriot state.
Last month, the government agreed to renegotiate the Production Sharing Contract, or PSC, for Aphrodite.
The Egyptian minister hailed the agreement as a positive step towards the commercial exploitation of the island’s gas reserves and encourage further exploratory activity in the region.
“The energy reserves in the Mediterranean basin can act as a catalyst for further co-operation in the area,” Mr el-Molla said.
Mr Lakkotrypis described Wednesday’s signing as a landmark for the entire region and not just the South. Egypt to South Cyprus gas pipeline ‘unlawful’, p11