Egypt and Cyprus signed an agreement on Wednesday to construct a direct marine pipeline to transfer natural gas from the Cypriot Aphrodite field to Egypt and then to be re-exported to different markets, statement by the Egyptian petroleum ministry read.
Tarek El-Molla, Egypt's petroleum and mineral resources minister, signed the deal with Georgios Lakkotrypis, the Cypriot minister of Energy, Industry, Tourism and Trades, in Cyprus.
In May, El-Molla estimated that the planned pipeline connecting Cyprus’ Aphrodite gas field to Egypt’s liquefied natural gas (LNG) facilities will cost around $800 million.
El-Molla said that this agreement is considered to be among "the main foundations in supporting the economic relations between the two countries and is an important step in maximizing the benefit of the discoveries of the Cypriot gas fields."
He added that the new deal will encourage further research exploration activities in the region and will contribute to further support joint cooperation in the field of gas and oil between the two countries.
Meanwhile, the Cypriot minister tweeted that "the signing of the IGA for a gas pipeline between Cyprus and Egypt is an important milestone for the creation of an EastMed NatGas corridor to the EU and strengthens the energy investment environment in our region."
El-Molla also stressed on the importance of the Egyptian role in the future of the gas field in the Eastern Mediterranean region with its strategic location, strong infrastructure, and the gas discoveries it has made.
He pointed out that Egypt has already taken a number of measures, as part of its national project initiative, to transform it into a regional hub for gas and petroleum trading.
"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," the statement read, adding that the signing of the memorandum of understanding for the partnership between Egypt and the EU in the field of energy last April opens up important prospects for the role that Egypt can play in the industry.