Egypt and Cyprus on Wednesday (September 19th) signed an agreement paving the way for the Mediterranean’s first subsea pipeline to carry Cypriot natural gas to Egypt for re-export to Europe, AFP reported.
Egyptian Oil Minister Tarek al-Molla and Cypriot Energy Minister George Lakkotrypis signed the agreement during the Egyptian minister's visit to Cyprus.
Lakkotrypis said the agreement, "the first of its kind in our shared region", was crucial for channelling gas from the island’s "Aphrodite" offshore field to Egypt and to attract multi-billion-dollar infrastructure investments.
A joint committee is to be set up in 30 days to oversee the project.
Wednesday’s agreement is backed by the EU in its search to diversify energy sources.
"We are essentially talking about a European pipeline, intended to transport Cypriot natural gas to Egypt for re-export to Europe in the form of liquified natural gas (LNG)," said Lakkotrypis.
The pace of construction of the pipeline to deliver gas to Egypt would depend on commercial agreements with investors.
Cyprus aims for natural gas to start flowing to Egypt’s LNG facilities in 2022, thus generating its first revenue from natural gas.