Egypt to liquify and re-export Cypriot gas: The Oil Ministry yesterday inked two agreements with Cyprus to liquify and re-export Cypriot natural gas on the sidelines of the first day of the Egypt Energy Show, according to a statement. The agreements come as part of the government’s push to return Egypt to its status as a net LNG exporter.

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The agreements involve Cyprus’ Aphrodite and Cronos fields and will see Cyprus ship natural gas from its offshore fields to be liquefied in facilities in Idku and Damietta before being re-exported to foreign markets.

The plan for the Aphrodite field: The previously-approved development and production plan for Aphrodite includes a floating production unit within Cyprus’ exclusive economic zone and a pipeline to transport gas to Egypt, according to a press release (pdf) from Chevron, which holds a 35% stake in the gas field. Shell holds another 35%, while Israel’s NewMed Energy holds the remaining 30% — the field holds an estimated 3.5 tn cubic feet of gas.

“[The Aphrodite field] is a significant resource for Cyprus and an important part of Chevron’s Eastern Mediterranean portfolio as well as providing natural gas supplies to Egypt to help meet the country’s growing energy demand,” VP of international exploration and production at Chevron Frank Cassulo said.

The plan for the Cronos field: Gas from the field will be re-exported to European markets after being processed in Zohr facilities and liquified in Damietta, Eni said in a statement. Eni and TotalEnergies each have a 50% interest in the field, which is estimated to hold over 3 tn cubic feet of gas.

“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,” Eni CEO Claudio Descalzi said.

A full house: The agreements were signed in the presence of President Abdel Fattah El Sisi, his Cypriot counterpart Nikos Christodoulides, Oil Minister Karim Badawi, Cyprus’ Energy Minister Giorgos Papanastasiou, as well officials from Eni and Chevron.

REMEMBER- We first got word last month that the fields’ joint owners were expected to ink agreements for gas liquefaction and re-export with the Madbouly government. At the time, reports indicated that gas coming from the Cronos deposit was expected to be exported, while gas coming from the Aphrodite field could be used to feed local demand or be exported — we are yet to find out where the gas from the Aphrodite field will end up.

And more to come: The two sides will continue discussions to bring more Cypriot gas to Egypt.

The news received attention from: Bloomberg, Reuters, the AP, and The National.

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