Egypt and Cyprus signed a framework agreement for cooperation on gas during the Egypt 2026 Energy Show on Monday.
According to Reuters, a spokesperson for the Cypriot presidency explained that the non-binding deal will serve as a foundation for further negotiations between the two countries on developing Cyprus’ gas reserves.
Another Cypriot government official stated that the agreement will enable discussions on the sale of natural gas from Cyprus’ Kronos and Aphrodite offshore fields to Egypt or to Egypt’s state-owned companies.
Cypriot officials added that gas production from the Kronos field could begin as early as 2027 or 2028.
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This follows agreements signed last year between the two countries that allow gas from Cyprus’ offshore fields to be exported to Egypt for liquefaction and subsequent re-export to Europe, as both nations aim to strengthen the Eastern Mediterranean’s position as a key energy hub.
Egypt is also dealing with the spillover effects of the Iran war, particularly in its energy sector, as the country relies heavily on imported fuel.
Rising costs have been driven by disruptions to oil and gas production and trade across the Middle East.
In response, the government has increased fuel prices and public transport fares, introduced a work-from-home policy, and directed most malls, shops, and restaurants to close by 9 p.m. five days a week.
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Image Credit: Reuters
