Cyprus-Egypt pipeline a reality, at last
by fm
18th February 2025
A decade after the idea was first put on the table, Cyprus and Egypt have finally agreed to transport natural gas from the island’s as yet unutilised offshore reserves to facilities on the North African coast for processing and re-export to international markets.
This means that Cyprus will at last abandon the over-ambitious plan to build its own liquefaction plant and save about 10 bln euros, which oil majors were reluctant to foot the bill for.
Instead, Egypt’s under-utilised plants at Damietta and Edku, some 240 kms south, can now work at increased capacity, reducing costs and making the Cyprus natgas more affordable.
Due to rapidly growing demand, Egypt too is seeking alternative sources of energy to fire up its power stations, as Cairo aims to become a regional energy exporter because its own output suffered declines in recent years.
“Cyprus’ energy plans are proceeding normally, with the signing of the (commercialisation) agreement and memorandum of understanding in Cairo, decisive for the future of our energy plans,” said President Nikos Christodoulides, after returning from Egypt.
The Cypriot president and Abdel Fattah El Sisi had extensive talks about cooperation on the sidelines of the Egypt Energy Show (Egypes), an event bringing together world leaders in the energy sector and policy makers dedicated to the sustainable energy transition.
Two agreements were signed for the transport of gas from the Cypriot fields of Aphrodite in Block 12 operated by U.S. giant Chevron and three gasfields in Block 6, operated by Italian Eni, to the natural gas liquefaction plants near Alexandria.
Egypt, along with Italian energy giant Eni and France’s TotalEnergies, have agreed to collaborate to commercialise the natural gas reserves discovered within Block 6 of the Cyprus exclusive economic zone (EEZ).
18th February 2025
A decade after the idea was first put on the table, Cyprus and Egypt have finally agreed to transport natural gas from the island’s as yet unutilised offshore reserves to facilities on the North African coast for processing and re-export to international markets.
This means that Cyprus will at last abandon the over-ambitious plan to build its own liquefaction plant and save about 10 bln euros, which oil majors were reluctant to foot the bill for.
Instead, Egypt’s under-utilised plants at Damietta and Edku, some 240 kms south, can now work at increased capacity, reducing costs and making the Cyprus natgas more affordable.
Due to rapidly growing demand, Egypt too is seeking alternative sources of energy to fire up its power stations, as Cairo aims to become a regional energy exporter because its own output suffered declines in recent years.
“Cyprus’ energy plans are proceeding normally, with the signing of the (commercialisation) agreement and memorandum of understanding in Cairo, decisive for the future of our energy plans,” said President Nikos Christodoulides, after returning from Egypt.
The Cypriot president and Abdel Fattah El Sisi had extensive talks about cooperation on the sidelines of the Egypt Energy Show (Egypes), an event bringing together world leaders in the energy sector and policy makers dedicated to the sustainable energy transition.
Two agreements were signed for the transport of gas from the Cypriot fields of Aphrodite in Block 12 operated by U.S. giant Chevron and three gasfields in Block 6, operated by Italian Eni, to the natural gas liquefaction plants near Alexandria.
Egypt, along with Italian energy giant Eni and France’s TotalEnergies, have agreed to collaborate to commercialise the natural gas reserves discovered within Block 6 of the Cyprus exclusive economic zone (EEZ).
Export to Europe
According to ENI, the gas would be transported and processed in Egypt at “existing Zohr facilities, before being liquefied in the Damietta (liquified natural gas) LNG plant for export to European markets.”
First discovered in 2011, Aphrodite is estimated to hold 3.5-4.4 trln cubic feet. It is operated by Chevron, which bought the rights from Noble Energy, and is partners with BG Cyprus (Shell) and NewMed Energy 30%.
Frank Cassulo, Chevron’s International Exploration and Production’s vice president issued a statement, saying that it will “provide the basis to move forward with related commercial arrangements.”
Cassulo reaffirmed Chevron’s commitment to developing the Aphrodite project, emphasising its strategic importance both for Cyprus and for Chevron’s eastern Mediterranean portfolio.
The approved development and production plan (DPP) includes the establishment of a floating production unit (FPU) within Cyprus’ EEZ and a pipeline to export gas to Egypt. Chevron’s extensive resource base in the eastern Mediterranean, estimated at 45 tcf of gross resources, offers significant expansion opportunities to meet growing natural gas demand in the coming decades.
ExxonMobil future plans
In Cairo, Christodoulides also met with ExxonMobil’s vice president for global exploration, John Ardill, who briefed the Cypriot president on the U.S. energy giant’s drilling activities in Block 5 and future plans from Block 10.
“We will soon have results. He will visit Cyprus during the second week of March to inform us in person, and the energy plans of the Republic of Cyprus are progressing normally,” Christodoulides added.
“This agreement paves the way to bring Cyprus’ gas to the market in a timely fashion, contributing to energy security and competitiveness of energy supply,” said Claudio Descalzi, Eni’s CEO.
“This project leverages Egypt’s existing infrastructure, including export facilities, which are a key enabler for developments in the region. Egypt and Cyprus reaffirm their roles in the emerging energy hub of the eastern Mediterranean, which is set to play an increasing role in the global gas supply in the near future.”
Discovered in 2022, Cronos is estimated to hold more than 3 tcf in natgas reserves, while Block 6 encompasses further potential resources under exploration and appraisal, including the Zeus field also discovered in 2022.
Block 6 is operated by Eni holding a 50% interest, while TotalEnergies holds the remaining 50%. Eni also operates Block 8 and has participating interests in Blocks 7 and 11.
Eni has been present in Egypt since 1954. The company is currently the country’s leading producer with an equity production of approximately 280,000 barrels of oil equivalent per day in 2024. It also has a 50% share in the Damietta LNG Plant.
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