NewMed Energy signs gas supply agreement for Aphrodite field

NewMed Energy, the Cyprus Hydrocarbons Company, and the Egyptian Natural Gas Holding Company (EGAS) have signed a memorandum of understanding for the sale of natural gas from the Aphrodite offshore field in the Cyprus Exclusive Economic Zone. The agreement involves the supply of 100 billion cubic meters (BCM) of natural gas to be transported via pipeline to an Egyptian terminal. The contract duration is 15 years, starting from the onset of production, with an optional five-year extension. Pricing is indexed to Brent crude oil rates, and the deal incorporates a 'take or pay' mechanism to ensure stable supply. Yossi Abu, CEO of NewMed Energy, stated this is a critical step toward a Final Investment Decision (FID). Meanwhile, Cypriot officials have noted that negotiations regarding the 'Yishai' field remain unresolved. Additionally, discussions are ongoing regarding the potential future export of gas from the 'Cronos' field, with production estimated to potentially commence between 2027 and 2028.