Egypt is aiming to sign a memorandum of understanding (MoU) with the EU before the middle of 2018 as it targets becoming a regional energy hub.

Egypt’s Minister of Petroleum & Mineral Resources Tarek el-Molla said that the negotiations with the EU were a key part of its plans to become a strategic energy exporter.

“Becoming a regional energy hub will have benefits for all players involved,” he said. “We are progressively working on transforming the oil and gas sector,” said El-Molla.

El-Molla cited Egypt’s extensive oil and gas infrastructure, including existing pipelines, refineries, platforms, and two liquefied natural gas (LNG) terminals, as a key advantage as it sought to become a major gas hub in North Africa and the Mediterranean region.

Egypt’s Petroleum Minister said that the country is aiming to export hydrocarbons that are produced domestically as well as hydrocarbons that are produced by neighbouring countries.

He said that Egypt had the potential to store blend and treat both crude and refined products “flowing to and from Europe”.

Earlier this month, Egypt’s Dolphinus Holdings signed a landmark deal worth $15bn to buy 64 billion cubic metres of Israeli gas.

The gas will be supplied from Israel’s Tamar and Leviathan reservoirs and bought from US-based Nobel Energy and Israel’s Delek Drilling.

Half of the gas will be supplied from each field and the proceeds will be split evenly between the two companies.

The agreement could potentially set the scene for exports of Israeli gas to an Egyptian liquefied natural gas (LNG) terminal that is operated by Anglo-Dutch Shell.