The analysis performed by the international banking colossus BNP Paribas concludes that any other option other than a pipeline through Egypt, especially in a few years when Egypt’s own production will cover its domestic demands, will significantly raise export costs.
In the report, BNP Paribas notes that a clear timetable for developing Cyprus’ Aphrodite field has as yet not been set, but points out that the most profitable utilisation of the 4.5 trillion cubic feet of natural gas is best achieved along with that of Israel’s neighbouring Leviathan through a pipeline to Egypt’s existing liquefaction plants.
The report also points out that TOTAL-ENI’s exploratory drills in plot 11 of the Cyprus Exclusive Economic Zone are encouraging and transporting any finds to Egypt through a pipeline is again the most advantageous option.
BNP Paribas, in its report, points out two problems in achieving this goal. The first is the ‘geopolitical sensitive’ relations between Israel and Egypt which require a lot of work and the second concerns the “resurging danger of the complexity of the political situation regarding Turkey in the area,” referring to Turkey’s relationship with Cyprus.
The energy relations between Egypt, Greece and Cyprus were recently addressed by Egypt’s Petrol Minister Tarek El-Molla in an interview in ‘Egypt Energy’ who expressed significant development in this area over the past two years.
Referring to the relevant agreement signed between Cyprus and Egypt, El-Molla said that it was a move backed by strong political support which will be beneficial to both countries.