Egypt is said to have signed an agreement with Cyprus to buy natural gas

A Noble Energy delegation arrived in Egypt to resume negotiation with state-run Egyptian Natural Gas Holding Company (EGAS) to discuss importing gas from the Aphrodite field in Cyprus.

EGAS chairman Khaled Abdel Badie said this is not the US delegation’s first visit, as it had previously visited to discuss technical and financial details of exporting gas to Egypt. It also discussed supplying EDCO and Damietta liquefaction plants from the Aphrodite field.

In a statement to Daily News Egypt, Abdel Badie announced that Noble Energy is currently studying the possibility of sending a ship to facilitate gas production from Aphrodite field and supply the pipeline of 4,000 kilometres length to reach Egypt.

He added that the Noble Energy plan will be reviewed, including its development of the Aphrodite field, in order to set the amount to be supplied.

Egypt is said to have signed an agreement with Cyprus to buy natural gas to fulfil the local market’s needs.

Abdel Badie said they do not have any problems with the negotiations with Cyprus, except for technical obstacles which are being resolved with Noble Energy.

Cypriot gas will be supplied to Egypt by 2017 following the construction of a new pipeline and new ships for facilitating production, he expects.

Abdel Badie noted there will be talks with Noble Energy regarding the Memorandum of Understanding (MoU) it signed with Spanish company Union Fenosa, and British company British Gas (BG).  Both are owners of EDCO and Damietta factories, but questions remain regarding their natural gas supply, for them to export it to international markets.

He revealed that the cost of constructing a gas transportation pipeline will be divided between the supplier, represented by Cyprus and Noble Energy company, and the importer, namely Egypt, BG, and Union Fenosa.  The pipeline will come from the Aphrodite field to Egypt through the deep waters of the Mediterranean.

Bublished by: Daily News Egypt