The Egyptian Ministry of Petroleum and Mineral Resources and the Cypriot Ministry of Energy, Commerce, and Industry signed a cooperation agreement on natural gas aimed at utilizing Cyprus’ gas resources.
Cyprus is estimated to hold about 20 trillion cubic feet of gas reserves, according to Cypriot Energy Minister Michael Damianos.
The agreement includes the creation of a joint committee between the two countries to design and implement frameworks for developing Cyprus’ Aphrodite gas field and to manage negotiations on offshore exploration and production projects off the country’s coast.
Damianos confirmed that part of the Cypriot gas will also be re-exported to European markets, with the first shipment expected to reach Egypt from Cyprus’ Kronos field in 2028.
Another agreement was signed between Egypt’s petroleum ministry and US energy company Chevron to expedite the development and production of gas from the Aphrodite field.
This aims to link the field to Egypt via a 280-kilometre subsea pipeline, allowing the gas to be transported to the country’s network in Port Said for processing and re-export.
This will help meet Egypt’s rising demand and strengthen its position as a regional energy hub.
The agreements align with Egypt’s plan to increase domestic energy production, secure additional liquefied natural gas (LNG) shipments, and adjust supply flows.
On the sidelines of EGYPES, the Egyptian General Petroleum Corporation (EGPC) and the General Authority for Health Insurance (GAHI) signed a memorandum of understanding (MoU) with Italian energy company Eni to develop the New Heliopolis Hospital, according to a statement from the petroleum ministry on Monday.
The MoU is part of Eni’s corporate social responsibility programme. It aims to support healthcare services, improve medical infrastructure, and enhance the quality of healthcare delivery.
This comes after the suspension of Israeli gas supplies due to the ongoing US–Israeli war on Iran amid concerns that the disruption could continue. The conflict has already disrupted international supply chains and the energy sector.
Egypt’s gas production is about 4.1 billion cubic feet per day, while domestic demand is around 6.2 billion cubic feet per day. The country also consumes petroleum products worth around $20 billion annually.
Cairo aims to settle all remaining payments owed to oil and gas production partners by the end of June 2026, with outstanding arrears reduced from around $6.1 billion in June 2024 to approximately $1.3 billion.
The country plans to drill more than 100 exploratory wells in 2026 and over 480 wells across all petroleum-producing areas under a five-year strategy to maximize resources, secure new energy reserves, and slow the decline in production as new wells are discovered.
Earlier this month, the Egyptian government increased fuel and gas prices by 14-30 percent to maintain energy supplies for electricity, industry, and housing, as global crude prices exceeded $90 per barrel, up from previous levels of $60–$70.
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