Egypt has signed a deal with a Cypriot firm to lay a 310-kilometre (195-mile) cable under the Mediterranean to export electricity to Europe, the company said on Thursday.

Nicosia-based EuroAfrica described the deal, worth an estimated two billion euros, as a "landmark."

“Cyprus now becomes a major hub for the transmission of electricity from Africa to Europe," said company chairman Ioannis Kasoulides.

It is estimated the project will take 36 months to implement from the start of construction, with the lowest point 3,000 metres below sea-level.

Phase 1 will see the interconnector carry a capacity of 1,000 MW which can be upgraded to 2,000 MW at a later stage.

"The national electricity grid of Egypt will be linked to the European electricity system through Cyprus and will contribute to energy security," Kasoulides said.

Following the crises in Crimea and eastern Ukraine, the EU has been keen to develop alternative sources of energy to reduce its dependence on imports from Russia. 

In the past year, gas has started flowing from four major new fields off Egypt's Mediterranean coast, and output is already sufficient to meet domestic needs.

The Arab world's most populous country is now seeking to develop the infrastructure to export its newfound energy wealth, both as liquefied natural gas and as electricity.

Egypt is also seeking to import gas from fields off Cyprus and Israel to boost the profitability of the new liquefaction and export facilities it is developing on its Mediterranean coast.

In September, Egypt signed a deal with Cyprus to build an undersea pipeline to pump Cypriot offshore gas to Egypt for processing for export to Europe.

The plans have led to closer eastern Mediterranean ties, with Cyprus, Egypt, Greece and Israel holding regular high-level meetings.