Cyprus and Egypt signed the first among three agreements that involve gas to be transported from Cyprus EEZ to the LNG terminals of Egypt or for consumption in Egypt’s power stations. But there are still many obstacles to be overcome.

In a joint statement August 31 the energy ministers of Cyprus and Greece said that their governments had decided “to speedily proceed with discussions on an Intergovernmental Agreement for the pipeline from Cyprus to Egypt, which will be intended to facilitate the realisation of the project within the maritime areas of jurisdiction of the two countries.

“Co-operation in the oil and gas sector between the two countries will further deepen the excellent relations between Cyprus and Egypt to the mutual benefit of the peoples of Cyprus and Egypt, and will also further unlock and promote the potential of the Eastern Mediterranean as a whole.”

In signing the agreement Cyprus’ energy minister Giorgos Lakkotrypis said that it creates a secure investment framework for the transport of natural gas to Egypt.

He added “Essentially today we signed an agreement that provides that the two countries will respect the provisions of any trade agreements to be made in the near future … We hope that this agreement will assist and accelerate trade agreements … creating a secure investment framework for the sale of natural gas from Cyprus to Egypt.”