Written by journalist Danylo Aleksandrov

Liquefaction facilities of Egypt will be used to transport offshore gas from Cyprus to Europe after a deal was signed between QatarEnergy and ExxonMobil.

An agreement was signed between with QatarEnergy on one sidem the other being represented by ExxonMobil and Ministry of Petroleum and Mineral Resources of Egypt. According to the deal, QatarEnergy will explore possibilities of developing gas fields off the coast of Cyprus and using Egyptian infrastructure that is already existing. The memorandum of understanding signed by parties is part of a wider plan to connect Cyprus gas with Egyptian energy infrastructure and European markets. Egypt will gain benefits for its domestic consumers, while international markets would also welcome this development.

The deal is significant, as there are no facilities on Cyprus that liquefy gas. Because of this, the gas extracted near the island must first be transported to Egypt before being sold to Europe. This has been a longtime challenge for Cyprus, with a number of governments diverting resources to resolve the issue. The current president of the island nation Nikos Christodoulides described the agreement as a turning point from which Cyprus would not only explore its natural gas, but also exploit it.

Another aspect is the leading role of Egypt. It is not surprising, as the country signed another agreement with Cyprus in April, according to which all recoverable gas from the island’s Aphrodite field would go to Egypt for a period of 15 years with the possibility of extension for 5 years. While this develops the already existing relationship between QatarEnergy and ExxonMobil in Cyprus, it is also becoming apparent that Egypt is emerging as a main energy hub in the Eastern Mediterranean region.

While the plan is just beginning, with more details and investments to be agreed upon later, if it proceeds as planned, in 2028 first exports of gas from Cyprus will arrive to Europe.