EGAS has signed a preliminary agreement with Russia’s Gazprom to explore gas opportunities in Egypt as part of the latter’s overseas expansion.

The Memorandum of Understanding was signed on Saturday, 27 March 2005 during a visit to Cairo by Gazprom Chief Executive Officer Alexei Miller.

Miller held talks on prospects for cooperation in oil and gas sectors with Egyptian Prime Minister Dr. Ahmed Nazif, Petroleum Minister Eng. Sameh Fahmy and EGAS Chairman Eng. Mohamed Tawila.

The parties discussed Gazprom’s possible involvement in existing projects for hydrocarbons production, transportation, processing and marketing, including LNG. The two sides also discussed coordination regarding Arab Gas Pipeline which already connects Egypt and Jordan, and should eventually encompass Lebanon, Syria and potentially Turkey and Cyprus in a gas network.

Egypt’s cooperation with Gazprom reflects Egypt’s ambition for a bigger role in development of its natural gas industry and a higher profile on the international LNG scene.