South to sign first gas agreement with Egypt

South Cyprus and Egypt will sign their first deal on Thursday to sell Cyprus gas to Egypt.

Tarek El Molla, Egypt’s Minister for Petroleum and Natural Resources will fly to Cyprus to sign the first of three agreement being prepared by both governments.

This will concentrate on gas from the South’s EEZ being transported to gas terminals and possibly to power stations in Egypt.

The new gas agreement will shift the focus away from Turkey and Israel’s plans to route gas from Israeli field through Turkey.

In a region which is blighted by political problems, the new deal points to a change in Cyprus’ energy policy. And will be an encouragement to energy companies drilling offshore Cyprus. The deal sends a strong message with regards to Cyprus’ energy plans at a time when the region is plagued with problems and is seen as commercially important as this move will assist the companies involved in offshore drilling in Cyprus’ EEZ.

Cyprus Weekly

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