INTERVIEW - Cronos gas deal with Egypt strengthens energy security, bilateral ties: Cyprus President

Ghada El-Sharkawy , Sunday 16 Feb 2025

Signing two agreements to develop gas resources in Kronos and Aphrodite is a pivotal moment in the growing strategic partnership between Egypt and Cyprus, Cypriot President Nikos Christodoulides tells Ahram Online

Egypt

 

Egyptian-Cypriot relations embody a unique model of cooperation and mutual respect. Over the ages, this relationship has been a bridge of peace and stability in the heart of the Mediterranean region, where East meets West, as Cyprus and Egypt have been strategic partners in many political, economic and cultural issues.

These historical ties have been strengthened over time, reaching a new stage of fruitful cooperation in the fields of energy and sustainable development.

In this context, Cypriot President Nicos Christodoulides gave an interview to Ahram Online during his current visit to Egypt at the invitation of President Abdel Fattah El-Sisi, to attend the signing ceremony of two important agreements to develop gas resources in the Kronos and Aphrodite areas in the exclusive economic zone of Cyprus.

As the President said during the interview, these two agreements represent an important step towards strengthening cooperation in the energy sector between the two countries and opening new horizons for strategic partnerships that contribute to enhancing growth and development in the Mediterranean region.

The Cypriot President also reviewed Cyprus' vision for the future of cooperation with Egypt in various fields, and his aspirations to expand the horizons of partnership between the two countries in the coming years.

AO: How do you view the current state of bilateral relations between Cyprus and Egypt? Looking ahead and in the coming years, how do you see this relationship developing and what areas of cooperation do you think can be further strengthened?

The relationship between Cyprus and Egypt is at an excellent level, built on shared principles and mutually beneficial cooperation. In an increasingly complex regional and global landscape, our partnership is more crucial than ever in promoting peace, stability, and prosperity in our region and beyond.

Our strategic partnership was reaffirmed just a month ago, during the 2nd Cyprus-Egypt Intergovernmental Summit, which took place here in Cairo where seven Memoranda of Understanding were signed. These agreements span various sectors, including higher education, technology, women’s empowerment in tourism, marine ecosystem development, water resource management, and nuclear safety.

Another key step was taken in June 2024 with the signing of a Memorandum of Understanding to facilitate and regulate the employment of Egyptian workers in Cyprus. This agreement aims to address labour market needs in a structured and controlled manner, reflecting our commitment to mutual economic benefit.

Today, we mark another milestone with the signing of an agreement for the transport of natural gas from Cyprus’s offshore “Cronos” deposit to Egypt for liquefaction and export. This collaboration strengthens energy security and underscores the strategic significance of our bilateral ties.

Looking ahead, our bilateral relations hold great promise. We will continue deepening our strategic partnership through sustained dialogue, joint initiatives, and strategic partnerships that serve the interests of both nations.

On a personal note, my frequent visits to Egypt—four times in the past 12 months— are a testament to the importance I place on this relationship. My first official visit outside the European Union after my election was to Egypt, reaffirming the deep-rooted ties and shared vision between our countries.

AO: Mr. President, upon the invitation of President Sisi, you will visit Cairo to attend the signing ceremony of two major agreements on the development of gas resources. Could you elaborate on the importance of these agreements for the future of cooperation between Cyprus and Egypt, especially in the energy sector? How do you envision these agreements contributing to regional economic growth and stability in the Eastern Mediterranean and the future of energy collaboration between the two nations?

 These agreements mark a pivotal moment in the growing strategic partnership between Cyprus and Egypt, particularly in the energy sector. This collaboration builds on the intergovernmental agreement reached in 2018, which laid the foundation for the exploitation of Cyprus' hydrocarbon resources by utilizing Egypt's infrastructure.

Building on the above agreement, the first of the two agreements centers around the Host Government Agreement (HGA) for the "Cronos" gas discovery in Block 6 of Cyprus’ Exclusive Economic Zone (EEZ).

 It represents a significant milestone in the commercialization of this important discovery. It sets out the legal, tax, and regulatory framework for the development of the "Cronos" field, facilitating the construction of a submarine pipeline to transport the gas to Egypt for processing, liquefaction, and export.

Although such agreements are signed by the host country and the potential investor, the Republic of Cyprus will be a part of this agreement, as the owner of the natural gas and potential seller, a testament to our commitment and support to expedite the development of the “Cronos” discovery.

The second agreement is between the “Aphrodite” Contractors, Cyprus, Egypt, EGAS and CHC concerning the "Aphrodite" discovery and gives the framework for the Host Government Agreement that will follow and describes the commercialization of the gas.

The signing of these agreements marks a pivotal moment in the growing strategic partnership between Cyprus and Egypt, particularly in the energy sector.

This collaboration builds on the intergovernmental agreement reached in 2018, which laid the foundation for the exploitation of Cyprus' hydrocarbon resources by utilizing Egypt's infrastructure.

Both agreements are significant for the expedition of both projects. They will certainly further deepen Cyprus-Egypt relations while also contributing to the broader economic growth of the region in the broader East Med Energy Corridor initiative, which aims to enhance regional energy security and economic stability.

More importantly, these projects will play a crucial role in ensuring the energy security of the European Union by providing an alternative and reliable source of energy through the Eastern Mediterranean.

Cyprus and Egypt are uniquely positioned to make significant contributions to global energy markets, and these agreements are a clear signal of our commitment to this shared vision.

As both countries are located in a geopolitically significant region, how do you see Cyprus and Egypt working together to address the challenges in the Mediterranean and North Africa? How do you view Egypt's recent regional and international role, especially mediation of ceasefire agreements in Gaza?

 Egypt and Cyprus have cultivated a robust strategic partnership, especially in the past decade, collaborating closely in tackling common challenges in the Eastern Mediterranean and North Africa but also advancing opportunities for regional synergies.

Our cooperation spans key areas such as security, energy, and economic development.

On the international stage, we collaborate with various multilateral organizations, including the United Nations and the Union for the Mediterranean, to address regional challenges and advance shared interests.

Cyprus, as an EU member, has been a strong advocate for closer EU-Egypt relations. The recent 10th EU-Egypt Association Council meeting in Brussels reflects this deepening partnership and commitment to regional stability.

Egypt plays a pivotal role both regionally and internationally. Regionally, Egypt is a crucial actor in promoting stability and security, particularly in the Eastern Mediterranean and North Africa.

Its efforts in mediating conflicts, most notably in Gaza, but also in other areas in Africa, underscore this commitment. Internationally, Egypt's influence is significant, reflected in its active and constructive participation in various multilateral organizations and initiatives.

Specifically on Gaza, Cyprus and Egypt share the commitment to take the steps necessary to help alleviate the current crisis.

We strive to provide additional humanitarian support, but we are also both steadfast proponents of fostering a political dialogue that will lead to the only realistic solution for lasting peace and regional stability: the two-state solution with the establishment of a viable Palestinian state alongside Israel.

At the broader level, Egypt is now a strategic partner of the European Union, especially in areas such as migration, counter-terrorism, and energy cooperation.

Its proactive role in regional diplomacy and international affairs underscores its significance as a key actor in fostering stability and cooperation.

AO: What is Cyprus’s stance on enhancing the relationship between the European Union and Egypt, especially in areas like trade, development, and regional cooperation?

 Cyprus has been, is, and will remain a strong advocate for further deepening the EU-Egypt partnership, recognising Egypt as a key pillar of stability, economic growth, and regional cooperation.

Cyprus is at the forefront of initiatives that strengthen ties with Egypt, acknowledging its essential role in conflict resolution, humanitarian efforts, and fostering security in the Middle East and North Africa.

In March 2024, I visited Cairo, alongside my EU colleagues and the President of the European Commission, when the relations between Egypt and the European Union were elevated to the level of a strategic and comprehensive partnership.

Cyprus sees immense potential in expanding EU-Egypt collaboration in trade, investment, and energy.

Projects like the interconnection of Egypt’s electricity grid to Europe via Cyprus and Greece, highlight the strategic importance of this partnership in ensuring energy security and sustainability.

Beyond energy, Cyprus values Egypt as a crucial economic and political partner, advocating for increased EU engagement in areas such as infrastructure, renewable energy, and digital transformation.

Egypt’s dynamic economy and strategic location make it a crucial partner, and I can reassure you that Cyprus remains committed to promoting initiatives that will foster shared prosperity and long-term stability for both Europe, Egypt and the Mediterranean as a whole.

AO: Cyprus has been playing an active role in regional partnerships, particularly through trilateral mechanisms (Cyprus, Greece and Egypt), How do you assess the importance of Egypt’s role in these collaborations?

 Strengthening regional cooperation has been a key priority for Cyprus, and our trilateral partnership with Egypt and Greece has become a model of stability and progress in the Eastern Mediterranean.

Building on the traditionally close bilateral relations with neighbouring countries that share the same vision, we actively pursued the creation of a network of cooperation with the dynamic and final aim of constituting the Eastern Mediterranean into an area of safety, peace and prosperity for our countries and our people.

Egypt is not just a strategic partner; it is a cornerstone of this partnership. Since our first trilateral summit in 2014, we have deepened our collaboration through numerous meetings and agreements, producing tangible benefits for our nations.

One of the most significant achievements has been our cooperation in the energy sector, particularly through the East Mediterranean Gas Forum. This platform enhances regional energy security while respecting international law and the sovereign rights of its members.

During the recent 10th Trilateral Summit in Cairo, we reaffirmed our commitment to strengthening cooperation in key areas, such as promoting peace and conflict resolution, economic dialogue, energy, environmental sustainability, healthcare, and water security.

 This reaffirmation and commitment to the values that define our trilateral collaboration is the strongest safeguard for the viability and sustainability of our Partnership.

AO: Tourism is a significant industry for both Cyprus and Egypt. What steps can be taken to enhance tourism flows between the two countries, and are there any special initiatives planned to promote cultural exchanges?

 Tourism is indeed a vital sector for both Cyprus and Egypt, and there is strong mutual interest in strengthening cooperation to boost visitor flows between the two countries.

While specific initiatives are continually being developed, our commitment to enhancing tourism ties is evident.

Efforts will focus on promoting cultural exchanges, highlighting the rich historical and cultural heritage shared by both countries and exploring new opportunities for joint tourism initiatives. By leveraging our geographical proximity and shared cultural assets, we can unlock untapped potential and create new avenues for growth in this crucial sector.

Ultimately, strengthening tourism links between Cyprus and Egypt will not only benefit our economies but also foster deeper people-to-people connections, reinforcing the long-standing friendship between our nations.

AO: What developments have occurred regarding the “Roots Revival” initiative launched by President Abdel-Fattah El-Sisi during the tripartite summit in Nicosia in 2017?

 Launched by my friend President El-Sisi in 2017, the NOSTOS-Roots Revival initiative, remains a key pillar of our trilateral cooperation with Egypt and Greece, celebrating shared history, cultural ties, and the invaluable role of our diaspora communities in strengthening our nations’ bonds.

NOSTOS, the Greek word for ‘the desire to return to one’s roots/homeland, encapsulates the essence of this initiative – promoting people-to-people contacts and preserving our common traditions, culture and heritage. As someone with personal family roots in Alexandria, I deeply value such initiatives in safeguarding identity and history.

Since its inception, NOSTOS has fostered meaningful exchanges, including forums uniting diaspora communities, a conference in London focused on cultural and medical tourism, a Melbourne business forum connecting expatriate entrepreneurs, and youth exchange programs across our three countries.

At the 10th Trilateral Summit in Cairo this January, we reaffirmed our commitment to expanding NOSTOS by integrating cultural, educational, and research collaborations with the support of UNESCO.

In this spirit, we are pleased to welcome students from Cairo’s Ambetios School to Cyprus in April. Their visit, hosted by our government, will further strengthen the bonds between young Cypriots, Greeks, and Egyptians- ensuring that our historical ties continue to thrive through future generations.

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