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Thursday, 1 September 2016

Egypt to import gas from Cyprus

Egypt’s ambitions as a regional gas hub just got a major boost: We have a preliminary natural gas agreement with Cyprus. Cyprus signed an agreement for the transfer of natural gas to Egypt via pipeline once extraction begins off the Cypriot coast, Reuters reported. 700 mcf/d of gas are expected to be imported to Egypt from the Aphrodite field, Al Borsa reports. The agreement allows for “a direct subsea pipeline from Cyprus’s exclusive economic zone (EEZ) to either Egypt’s EEZ or onshore Egypt, for domestic consumption or re-export.” Government sources tell the Egyptian daily that Egypt will expect to see the gas by the 2019-20 fiscal year. Oil Minister Tarek El Molla tempered expectations by saying the agreement is just a “preliminary” one, according to Al Ahram. He added that this will allow Cyprus to use Egypt’s natural gas infrastructure while also helping satiate Egypt’s gas demands. One issue that could impede any agreement is the opposition from Northern Cyprus, which already voiced an opposition to the agreement with Egypt and said it could stifle Cypriot reunification efforts, Christopher Coats explains in Forbes.

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