Energy Minister George Papanastasiou met with Egypt’s Petroleum Minister Karim Badawi on Tuesday to discuss natural gas exploitation from Cyprus’ maritime exclusive economic zone (EEZ). The two ministers focused on enhancing cooperation to connect the Kronos natural gas field in Block 6 of Cyprus’ EEZ to Egypt’s energy infrastructure by 2027.
Photo: cyprus-mail.com
Natural gas: Advancing Joint Efforts
In a social media post following the meeting, Papanastasiou emphasised the objective of “accelerating our joint efforts” in the natural gas sector. This meeting comes shortly after Badawi and other Egyptian officials visited Nicosia, where they announced plans for natural gas exports from Cyprus to Europe via Egypt, with a target date set for 2027.
Photo: cyprus-mail.com
Investment Agreements Critical for Progress
The timeline for these exports relies heavily on a final investment agreement between the Egyptian government and a consortium made up of French multinational Total and Italian energy company Eni. This consortium is crucial for the exploitation of the natural gas from the Kronos field. Earlier this year, the Egyptian government was designated as the “host government” for Block 6 of Cyprus’ EEZ, highlighting its strategic role in this venture.
Utilising Existing Infrastructure
Given the proximity of the Kronos reservoir to Egypt’s Zohr gas field, which is also operated by Eni, the company is well-positioned to leverage its existing infrastructure. This will facilitate the transport of Cypriot natural gas to the Segas liquefied natural gas (LNG) terminal located in Damietta, Egypt.
Meetings with Key Industry Leaders
During the same day, Papanastasiou also met with Total’s CEO Patrick Pouyanne and Eni’s Chief Operations Officer Guido Brusco. These discussions were part of a broader effort to establish agreements that encompass the entire supply chain for the natural gas, from liquefaction in Damietta to eventual export to Europe.
Pipeline Surveys Underway
Seabed surveys to identify a suitable location for the pipeline transporting natural gas from Cyprus’ EEZ to Egypt commenced in June. The initial goal was to move natural gas from the Aphrodite gas field to the Damietta terminal. This initiative follows a significant agreement signed between the governments of Cyprus and Egypt, alongside American multinational Chevron, Israeli energy firm NewMed Energy, and the BG Group, owned by Royal Dutch Shell. This agreement established a framework for the effective commercialisation of gas from the Aphrodite field.
Future Cooperation on Additional Gas Fields
Last week, Minister Badawi also spoke about the potential for further cooperation between Cyprus and Egypt in the energy sector. He noted that while the discussions primarily centred on the Kronos gas field, there is an ongoing effort to develop the Aphrodite gas field through Egyptian facilities. He remarked on the significant progress made in this area, highlighting the importance of the Aphrodite gas field, which is located in Block 12 of Cyprus’ EEZ.
Commitment to Energy Development
Badawi affirmed, “Our cooperation in the energy sector with the Republic of Cyprus is very important and is expanding daily. We are here to support the Republic of Cyprus in the full development of its energy reserves, so that it can exploit them and make them available to its citizens and to European markets which need energy.” This commitment underscores the mutual benefits of collaboration in energy resources, particularly as Europe seeks to diversify its energy supply.
