By Staff Reporter
Egypt has completed a feasibility study into natural gas imports from Cyprus, Egyptian media are reporting.
According to Egyptian newspaper Al-Borsa, engineering company Enppi has completed the technical and financial studies, the results of which are currently under review by EGAS, the state-owned holding company.
EGAS Chairman Khalid Abdul-Badi told Al-Borsa that the technical and financial studies include specifications and the cost of linking the Egyptian territory with the Aphrodite field in Cyprus via a maritime pipeline.
He added that the quantities to be imported amount to roughly 700 mcf/d of gas, and are expected to begin in 2018.
At an economic summit held at Sharm el-Sheikh in March, EGAS signed a memorandum of understanding with the Cyprus Hydrocarbons Company to trade information on building a pipeline to import gas from Cyprus.
A Ministry of Petroleum official also told Al-Borsa that the private sector would enter into the deal to import gas from Cyprus because it would be better and cheaper, and that costs would not exceed $6 per million BTU, compared to $10 per million BTUs for LNG.
The same official added that the regulations needed to establish a governing body to oversee natural gas consumption by the private sector has been completed, giving the private sector the ability to resolve its own fuel needs.
He explained that the state will receive a financial tariff in exchange for transferring the gas through the national grid, until it reaches the final destination at the consumer end.