US energy giant Chevron and the Egyptian Natural Gas Holding Company (EGAS) have signed a memorandum of understanding on their plans to transport gas from the Eastern Mediterranean.

Both companies agreed to cooperate in the fields of gas import, transport, liquefaction, and export, as well as the exploration of opportunities to "maximize its value through liquefaction and resale".

The pact was inked by EGAS chairman Magdy Galal and Chevron Eastern Mediterranean managing director Jeff Ewing.

Chevron's CEO, Mike Wirth, who met with Egyptian President Abdel Fattah Sisi, said his company plans in September to drill the first exploratory well in its concession area on the Mediterranean and promised to make use of Egypt’s technical and human expertise. 

Last week, a memorandum of understanding to export Israeli gas to Europe was signed by the energy ministers of "Israel", Egypt, and the EU.

The agreement, which was signed at a ceremony in Cairo, comes as Europe is looking for alternative sources of gas to replace Russia, which is currently being bombarded with sanctions by the West amid the war in Ukraine.

The gas will be transferred from "Israel" to Egypt via an existing pipeline, whereupon Egypt will liquefy and re-export it.

Under this agreement, shipments of LNG from Egypt to Europe will increase, but it will probably take a couple of years before the exports can be expanded.