Egypt and Cyprus signed a framework agreement on natural gas cooperation on Monday at the Egypt Energy Exhibition 2026.

A spokesperson for the Cypriot president's office stated that this non-binding agreement will serve as a basis for further negotiations between the two countries regarding the development and utilization of Cyprus's oil and gas reserves.

Another Cypriot government official added that the agreement will enable the two nations to negotiate the sale of natural gas from Cyprus's Kronos and Aphrodite offshore gas fields to Egypt or to Egyptian state-owned enterprises.

Cypriot officials indicated that natural gas extraction from the Kronos field could potentially commence in 2027 or 2028.

Last year, Egypt and Cyprus signed an agreement permitting the export of natural gas from Cypriot offshore fields to Egypt for liquefaction before being re-exported to Europe. Both countries aim to strengthen the Eastern Mediterranean's position as an energy hub through this initiative.

Egypt is currently facing spillover effects from the Iran conflict, particularly in the energy sector, as the country relies on imported fuel. With disruptions to oil and gas production and trade in the Middle East, associated costs have surged dramatically.

The Egyptian government has raised fuel prices and public transportation fares, announced a work-from-home policy, and mandated that most malls, shops, and restaurants close by 9:00 PM for five days a week.