Greece – Egypt – The energy alliance extends to natural gas
Greece’s strategic alliance with Egypt is being expanded with a new agreement in the energy sector, specifically in natural gas.
Athens and Cairo “joined hands” to explore the possibility of building gas pipelines between the two countries, cooperation in research and production and commercial liquefied natural gas (LNG).
As announced, the Minister of Environment and Energy Costas Skrekas signed with the Minister of Oil and Mineral Resources of Egypt Tarek el Mola, in Cairo, a Memorandum of Understanding (MoU) for the strategic cooperation Greece – Egypt in the field of natural gas.
The agreement between the two countries envisages the expansion of bilateral energy cooperation in the following three areas: 1. LNG trade, 2. exploration and production of natural gas, 3. the prospect of connecting the natural gas systems of the two countries with construction submarine pipeline.
Closer co-operation between the two countries in energy was agreed at a meeting between Prime Minister Kyriakos Mitsotakis in Athens in November 2020 with Egyptian President Abdel Fattah al-Sisi and confirmed during the Prime Minister’s visit to Cairo last June.
The three areas of cooperation in natural gas included in the MoU as a result of the Greek-Egyptian public opinion, which was established in April 2021 following a joint decision of the Greek Minister of Environment and Energy and the Egyptian Minister of Oil and Mineral Resources.
The Memorandum of Understanding of the two Ministries paves the way for the signing of special agreements in the three areas of cooperation between Greek and Egyptian companies, such as DEPA Commerce, EDEY and DEPA International Affairs.
In the Egyptian capital, Skrekas also took part in the work of the 6th Ministerial Meeting of the Eastern Mediterranean Gas Forum. Among other things, the results of the recent United Nations Climate Change Summit (COP26) were discussed, as well as the long-term strategic goals of the Forum.
The Minister of Environment and Energy stated: “The Memorandum of Understanding between our country and Egypt is another important step in deepening the strategy of our relationship, which is a factor of stability, security and prosperity in the Eastern Mediterranean region.”
“The agreement upgrades Greece’s geopolitical role as a transit hub for natural gas for the whole of Southeastern Europe, ensuring the provision of supply services and the diversification of sources and routes. “The role of gas in the coming years will be extremely crucial, in view of the transition operation and the emblematic reform of the de-lignification of our energy combination.”
“Strengthening bilateral cooperation with Egypt, which has rich know-how in gas exploration and production, will significantly benefit Greek companies, such as DEPA and EDEY.”
With the new agreement, the two countries relate their diplomatic relations, utilizing the possibilities they have through the EEZ.
The previous period, to be precise on October 14, was signed between Costas Skrekas and the Minister of Electricity and RES of Egypt Mohamed Sacker Memorandum of Understanding (MoU) for the electrical interconnection of Greece with Egypt.
The electricity connection of the two countries, which was the first in the region of the Southeastern Mediterranean, will be done by laying a submarine cable that will carry green energy.
This is a project with multiple:
- Through the interconnection electricity, the strategic relationship between Greece and Egypt is further upgraded, with the creation of a common, vital field of economic cooperation.
- The energy security of the country is strengthened, contributing to the stabilization of the national electricity system through the expansion of our international connections.
- This will significantly reduce greenhouse gas emissions and increase the use of Renewable Energy Sources.
- The energy sources that will be imported from the electricity interconnection will lead to a reduction of electricity prices, the strengthening of competition and the saving of resources, as the energy from RES is significantly cheaper compared to that produced from fossil fuels.