Egypt, Eni-Total Consortium to Sign Key Gas Agreement
Egypt and a consortium comprising energy giants Total of France and Italy's Eni will sign a pivotal agreement next month to transport natural gas from Cyprus' offshore Cronos deposit to Egypt for liquefaction and export.
This "significant" accord, as termed by Cypriot Energy Minister George Papanastasiou, empowers the consortium to finalize technical plans for extracting and transporting gas to Egyptian facilities for processing and subsequent export to markets like Europe.
The Eni-Total consortium, holding exploration licenses for seven blocks within Cyprus' economic zone, will finalize its extraction and transportation strategy before summer 2023. Recent assessments indicate that Cronos surpasses the Aphrodite deposit, Cyprus' first major gas discovery with an estimated 4.2 trillion cubic feet.
The host-government agreement will be formalized at Egypt's energy summit (February 17-19), attended by Cypriot President Nikos Christodoulides, announced Egyptian Oil Minister Kadim Badawi.
Egypt's President Abdel Fattah el-Sissi has extended an invitation to President Christodoulides. Badawi lauded the "collaborative spirit" between both nations in leveraging Egypt's infrastructure to maximize Cyprus' natural gas potential.
This agreement follows recent developments in Cyprus' gas sector. ExxonMobil and Qatar Petroleum have initiated drilling at the Elektra well, adjacent to their Glaucus deposit estimated to hold 5-8 trillion cubic feet of gas. Papanastasiou reported positive indications of another gas deposit at Elektra, approximately 3.72 miles beneath the sea. Preliminary drilling results are anticipated in early April.
Cyprus is transitioning from crude oil to cleaner, cost-effective natural gas for its energy needs. Egypt has expressed interest in utilizing the Prometheus tanker, intended for Cyprus' onshore gas import terminal, until Cyprus establishes its own infrastructure.
Despite contract obligations dictating the destination of Cyprus' natural gas, Papanastasiou noted the likelihood of importing cheaper gas from alternative sources while exploring options for Aphrodite gas utilization, whether for domestic consumption or export after Egyptian processing.