Egypt and Cyprus signed Monday a memorandum of understanding to develop several Cypriot natural gas discoveries for six months and to import natural gas, Egyptian oil minister said.
The MoU allows EGAS and CHC to study the technical solutions to transport gas through a direct marine pipeline from the Cypriot Aphrodite field to Egypt.
The 6 months-memorandum has been signed between the Egyptian Gas Holding Company (EGAS) and Cyprus Hydrocarbons Company (CHC) in the presence of Egyptian Prime Minister Ibrahim Mahlab. The agreement was signed by Cyprus Energy Minister George Lakkotrypis and his Egyptian counterpart Sherif Ismail.
Ismail said in a conference held at the cabinet headquarters Monday that the MoU is the start of cooperation between the two countries in importing gas. The best alternatives to import Cypriot gas through the not yet launched marine gas line between Egypt and Cyprus will be studied. Ismail clarified that there is no agreement over the prices of the imported gas, and that it will be negotiated after the sixth-month period.
Cyprus is keen to exploit the Aphrodite field off its southeastern coast but the reserves proven so far are not considered sufficient to make it viable for the island to develop onshore export infrastructure of its own.
Monday’s deal authorises the “Egyptian Natural Gas Holding Company and the Cyprus Hydrocarbons Company to examine technical solutions for transporting natural gas, through a direct marine pipeline, from the Aphrodite field to Egypt.”, a joint statement said.
“This will optimise the use of the gas infrastructure and achieve an added value for both Cyprus and Egypt,”
The Aphrodite field (Block 12), which was found by US firm Noble Energy in 2011, is estimated to contain between 102 billion and 170 billion cubic meters (3.6 trillion and six trillion cubic feet) of gas.
The island needs to find more reserves to make a proposed liquefied natural gas plant at Vassiliko on the south coast financially viable.
