Egypt and Cyprus have entered into a framework agreement to enhance their cooperation in the gas sector

Egypt and Cyprus have formalized an agreement enabling the two nations to engage in negotiations regarding the sale of natural gas to Egypt’s state-owned companies.

On Monday, Egypt and Cyprus formalized a framework agreement for cooperation on gas during the Egypt 2026 Energy Show.

A spokesperson for the Cypriot presidency stated that the non-binding agreement will serve as a foundation for the two countries to negotiate further agreements regarding the exploitation of Cyprus’ reserves.

A further statement from a Cypriot government official indicated that the agreement will enable the two nations to discuss the sale of natural gas to Egypt or its state-owned enterprises from Cyprus’s Kronos and Aphrodite offshore fields.

Officials from Cyprus indicate that they may be ready to begin gas extraction from Kronos in either 2027 or 2028.

In the previous year, Egypt and Cyprus formalized agreements that facilitate the export of gas from Cyprus’s offshore fields to Egypt for liquefaction and subsequent re-export to Europe, as both nations aim to enhance the Eastern Mediterranean’s position as an energy hub.

Egypt is experiencing the repercussions of the Iran war, especially in the energy sector, due to its reliance on imported fuel. Costs have surged due to the disruption of oil and gas production and trade throughout the Middle East.

The government has increased fuel prices and public transport fares, implemented a work-from-home policy, and mandated that most malls, shops, and eateries close by 9 p.m. five days a week.