Cyprus: Energy Deal Boosts Plans to Export Gas to Egypt

NICOSIA, Cyprus (AP) — A move by British oil and gas company BG International to buy a stake in Cyprus’ offshore mineral deposits is an important step forward for the country’s plans to supply Egypt with natural gas, the east Mediterranean island’s energy minister said Monday.
Yiorgos Lakkotrypis said U.S. company Noble Energy has cut a deal with BG International for a 35% stake in an area, or block, where a field estimated to contain more than 4 Tcf of gas has been found.
Lakkotrypis said the deal is a vote of confidence on the commercial prospects of Cyprus’ offshore gas deposits. It also boosts the chances of developing the gas field since BG operates a gas processing plant in Idku, Egypt.
“It’s very important that commercial interests are becoming aligned with our efforts to supply gas to Egypt,” Lakkotrypis said.
BG said in a statement Monday that the field offshore Cyprus “provides a potential source of gas to Egypt.”
No financial terms were disclosed. Noble will remain the block’s operator and keep a 35% stake in it. Israeli companies Delek and Avner each have a 15% stake.
BG’s Egypt gas processing plant can liquefy the fossil fuel for transport by ship to markets that could include Europe.
Lakkotrypis said the deal is important also because BG could share in the cost of bringing the gas to market, estimated at $2.13-3.19 billion.
The comments echo those made in September by the CEO of Italian energy firm Eni, who claimed it would be possible to bring gas from offshore Cyprus to the company’s Damietta plant in Egypt, where it could be processed for export to Europe.
In August, Eni announced a discovery off the coast of Egypt that it called the “largest-ever” ever made in the Mediterranean Sea. The company is also licensed to search for gas in three areas off Cyprus.
Related News
Related News

- Kinder Morgan Proposes 290-Mile Gas Pipeline Expansion Spanning Three States
- Three Killed, Two Injured in Accident at LNG Construction Site in Texas
- Tallgrass to Build New Permian-to-Rockies Pipeline, Targets 2028 Startup with 2.4 Bcf Capacity
- TC Energy Approves $900 Million Northwoods Pipeline Expansion for U.S. Midwest
- U.S. Moves to Block Enterprise Products’ Exports to China Over Security Risk
- U.S. Pipeline Expansion to Add 99 Bcf/d, Mostly for LNG Export, Report Finds
- Enbridge Adds Turboexpanders at Pipeline Sites to Power Data Centers in Canada, Pennsylvania
- Great Basin Gas Expansion Draws Strong Shipper Demand in Northern Nevada
- Cheniere Seeks FERC Approval to Expand Sabine Pass LNG Facility
- Heath Consultants Exits Locate Business to Expand Methane Leak Detection Portfolio
Comments