Egypt-Cyprus Pipeline Deal

Egypt and Cyprus on 19 September signed an inter-governmental agreement enabling a gas pipeline to tie-back gas fields discovered offshore Cyprus to one of the two LNG plants on Egypt’s Mediterranean coast. A commercial agreement would first need to be agreed though before any gas could make its way from Cyprus to Egypt.

The 4.5tcf 2011 Aphrodite discovery, and estimated 6-8tcf Calypso field discovered in January this year, are to-date the only discoveries made offshore the small Mediterranean island; neither has reached FID.

Nicosia is currently in discussions with the Aphrodite partners (Noble Energy 35%, Shell 35%, Delek 30%) to amend the production sharing contract in order to incentivize development ( MEES, 24 August ). MEES understands an agreement has already been hashed out between the Aphrodite partners and Shell, which operates the 7.2mn t/y ELNG export terminal at Idku, and all that remains is for Nicosia to meet the partners’ demands. (CONTINUED - 147 WORDS)