Greece Teams Up With Egypt on Gas Supply, Infrastructure

ATHENS (Reuters) - Greece and Egypt agreed to expand their cooperation in the supply of liquefied natural gas (LNG) and examine the possibility of constructing a subsea gas pipeline between the two countries, the Greek energy ministry said.

Natural gas production offshore Egypt.

The two sides signed a memorandum of understanding in Cairo on Thursday as a step towards specific agreements between Greek and Egyptian companies, the Greek energy ministry said in a statement.

Greece, which mainly imports gas from Algeria, Azerbaijan, Russia and Turkey, has been looking to diversify its resources and become an energy hub in southeastern Europe.

Last month, Greece and Egypt agreed on a plan to build an undersea cable linking their electricity grids. 

Last year, Greece and Bulgaria sought to reduce their reliance on Russian gas with the signing of an agreement that will allow Bulgaria to participate in a planned LNG terminal in northeastern Greece.

That project, which has strong support from the United States, is aimed at boosting energy diversification in southeastern Europe, a region largely reliant on Russian natural gas. Under the agreement, Bulgaria’s state-controlled Bulgartransgaz will acquire a 20% stake in the Greek company, Gastrade, that is developing the LNG terminal outside the Greek city of Alexandroupolis.

Greece has also joined Cyprus and Israel and Greece with plans for the East Med Pipeline, which would supply east Mediterranean gas to Europe as the continent seeks to diversify its supplies.

— P&GJ staff contributed to this report

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