The agreement takes Egypt one step closer to becoming the premier energy hub in the East Mediterranean.
Egyptian Oil Minister, Tarek El Molla, has signed an agreement with Cypriot Energy Minister, Yiorgos Lakkotrypis, that has been touted as a huge step in Egypt becoming the premier energy hub in the East Mediterranean.
According to a statement by the Oil Ministry, the deal will create an underwater pipeline that forms a direct connection between Cyprus' Aphrodite natural gas field to two liquefaction plants on Egypt's North Coast. Set to cost at least $1 bn to build, the pipeline also sets in place a framework for the exchange of natural gas between the two countries.
Though the priority is that the gas received satisfy local need, the deal could provide a huge boost for the economy. Egypt will also re-export some of the gas back to Europe, which could potentially open up a huge new market, as countries on mainland Europe look to find other sources away from their dependency on Russia.
Main image from Bloomberg