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Oil & Gas

Egypt and Cyprus are in “extensive discussion” on planned gas pipeline

gas pipeline
Posted: September 1, 2020 at 12:41 pm   /   by   /   comments (0)

Egypt, Cyprus talking ‘extensively’ about moving ahead with gas pipeline: Egyptian and Cypriot officials are in “extensive discussions” on a planned natural gas pipeline linking the two countries, Al Mal reports, citing an unnamed government official.

The construction of the pipeline is proceeding according to schedule despite the covid-19 pandemic, the official said, without mentioning dates or milestones. Once completed, it will allow natural gas from the Aphrodite gas field to flow to Egypt’s liquefaction facilities at Idku and Damietta.

This gas could then be liquified and re-exported to Europe and elsewhere. Egypt and Cyprus signed in 2018 an agreement to collaborate on setting up the direct pipeline, which received presidential approval in July last year.

Egypt should be looking to begin receiving Cypriot gas in 2022, Al Mal cites government officials as saying. Cypriot Energy Minister Yiorgos Lakkotrypis suggested last year that the wait could be much longer as output from the Aphrodite field will come between 2024 and 2025.

Background: The new pipeline is a crucial milestone in Egypt’s goal of becoming an energy export hub in the East Mediterranean, and Egypt will also be importing natural gas from Israel under a landmark USD 19.5 bn agreement. Egypt will re-export the LNG to Europe after it satisfies local demand. Alongside our plans to emerge as the region’s premier natgas hub, the country has potential to become a regional leader in electricity, with agreements with Saudi Arabia, Sudan, Cyprus and Greece set to see it send electricity in almost all directions.