Egypt and Cyprus sign gas framework deal to boost energy cooperation

Egypt and Cyprus signed a framework agreement on March 30 to strengthen cooperation in the gas sector, according to a Cypriot presidency spokesperson, as reported by Al Ahram. The announcement was made during the Egypt Energy Show (EGYPS 2026).

Egypt has been grappling with the impact of regional geopolitical tensions, particularly the war involving Iran, which has driven up energy import costs amid disruptions to oil and gas production and trade across the Middle East.

The agreement is non-binding but will serve as a foundation for further negotiations to deepen bilateral cooperation and support the development of Cyprus’s gas reserves. The two countries had previously signed an agreement last year to transport gas from Cyprus’s Cronos field, which holds an estimated 3.2 trillion cubic feet of reserves, to Egypt. The plan involves linking the field to Egypt’s gas infrastructure, paving the way for liquefaction and re-export to international markets.

Cyprus is seeking to position itself as a regional hub for gas exports to Europe. In February 2025, it agreed with Egypt to utilise the liquefaction facilities in Damietta and Idku, alongside the construction of a pipeline to transport gas from the Cronos and Aphrodite offshore fields. Egypt is expected to receive around 1.4bn cubic feet per day.

Cypriot officials have indicated that production from the Cronos field could begin between 2027 and 2028. The newly signed agreement will enable both countries to negotiate the sale of natural gas from the Cronos and Aphrodite fields to Egypt or to Egyptian state-owned companies.