Arab Finance: Egypt and Cyprus signed a framework agreement to boost natural gas cooperation on the sidelines of the ninth edition of the Egypt Energy Show 2026 (EGYPES) that kicked off on March 30th in Cairo.
President Abdel Fattah El-Sisi and Cypriot President Nikos Christodoulides witnessed the signing of the joint deal.
Minister of Petroleum and Mineral Resources Karim Badawi inked the agreement with Energy Minister of Cyprus Michael Damianos.
During the opening session of EGYPES, Badawi said in his speech that Egypt has reduced outstanding dues owed to its energy sector partners to around $1.3 billion from $6.1 billion in July 2024, aiming to settle all remaining payments by June 30th.
Badawi highlighted that Egypt’s strategic geographic location continues to provide a competitive advantage and supports the country’s drive to increase value-added output through the expansion of strategic industries, particularly petrochemicals and fertilizers.
He added that the country has established a leading position in fertilizer production, especially urea, with annual output exceeding 7.6 million metric tons.
The minister also said Egypt has an integrated petroleum infrastructure that includes advanced refineries, strategic ports on the Mediterranean and Red Seas, and efficient transport networks, enabling it to meet domestic market needs and strengthen re-export capabilities.
He pointed to the Arab Petroleum Pipelines Company (SUMED) as a successful model of Arab partnership, linking the Red Sea and the Mediterranean through pipelines stretching from Ain Sokhna to Sidi Kerir.
These advantages have strengthened opportunities for regional and international cooperation, particularly as work continues to connect the Cronos and Aphrodite gas fields to Egypt’s liquefaction plants in Idku and Damietta, Badawi noted.
The move is expected to maximize the use of Egypt’s existing infrastructure, diversify supply sources for both domestic consumption and exports, and reinforce the country’s position as a strategic energy hub, particularly amid progress in Egyptian-Cypriot cooperation.
Moreover, he pointed out that the sector had recorded 83 new oil and gas discoveries and added 363 wells to the production map, alongside investments worth $6.5 billion in exploration and production activities during fiscal year (FY) 2024/2025.
Egypt has also launched seismic survey programs and a global bid round in the Red Sea, with plans remaining in place to drill 101 exploration wells this year with investments of $1.3 billion.
This comes as part of a broader strategy targeting 484 wells by 2030 to support higher output and enhance the sector’s attractiveness.
At the same time, Egypt is continuing to develop its refining sector to boost domestic production of gasoline and diesel, he said.
Taking place at the Egypt International Exhibition Center in Cairo until April 1st, the energy conference hosts over 50,000 attendees, more than 500 exhibitors, and 2,200 delegates.
The three-day event serves as a hub for connecting global and regional energy suppliers, boosting collaborative action towards a sustainable energy future.
During EGYPES 2025, both sides signed two agreements to begin developing Cypriot natural gas discoveries, using Egyptian infrastructure.
