Egypt Inches Closer to Regional Energy Hub with Cyprus Gas Deal
Energy giants TotalEnergies and Eni have greenlit a new link-up between natural gas fields in Cyprus and processing facilities in Egypt, a deal that will allow for liquefied gas to be exported from Egypt's Mediterranean coast by 2028. The investment is expected to bolster 'Europe's energy security' as the bloc struggles with disruptions in regional energy markets.
This marks a significant step towards Egypt's long-held ambition to become a 'regional energy hub', a policy target that successive governments have failed to hit since its adoption in 2018. The deal will also help reduce Egypt's dependence on Israeli gas imports, which have been a source of diplomatic tensions.
The long-term prospects of this and similar deals were stress-tested when a drone strike hit energy vessels at Damietta Port just days after the investment was announced. However, experts believe that the deal is unlikely to be derailed by a single incident.