Cyprus energy hopes have been handed a massive boost following the move by Egyptian President Abdel al-Sisi to amend legislation that would allow direct gas imports from Israel into his country.
Nicosia sees the move as a positive step in bolstering the island’s energy plans as the lack of cooperation between neighbouring Egypt and Israel was seen as a major sticking point.
The change in legislation effectively means that Cyprus can supply Egyptian LNG plants with natural gas.
Al-Sisi passed the law at the beginning of August and is expected to be implemented before the end of the year although some companies have already started negotiations with Israel to purchase natural gas from the Israeli Leviathan gas field.
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The issue of transporting natural gas reserves to Egypt has been at the forefront of the government’s planning which had already submitted a plan, in the event of political difficulties, to transport the natural gas from Israel’s Leviathan gas field to Cyprus and subsequently along with the natural gas from Cyprus to be transported to Egypt.
The opening of direct imports by Egyptian companies from Israel has made things easier.
The British ‘Economist’ has also pointed out that Israel no longer needs to pipeline its natural gas reserves to Turkey as Egypt offers a better solution noting that the Egyptian LNG plants offer Israel the opportunity to offer its natural gas to the European market from Egypt.
Considering the latest developments and the previous cooperation between Israel and Egypt, it almost seems certain that the Israeli-Turkish pipeline will be shelved, reports claim.