Cyprus and Egypt agree on Aphrodite gas field development and export deal

NewMed Energy, alongside partners Chevron and Shell, has entered into an agreement to supply Egypt with natural gas from the Aphrodite offshore field in Cyprus' exclusive economic zone. The deal covers the sale of all exploitable gas quantities for an initial 15-year period starting from commercial production, which is expected by 2031, with a potential five-year extension. The project includes the construction of a subsea pipeline to Port Said, to be managed by a newly established entity called Aphrodite Midstream Co. NewMed Energy holds a 30% stake in the field, while Chevron and Shell hold 35% each. The reservoir, discovered in 2011, contains an estimated 3.5 trillion cubic feet of recoverable gas. While the agreement establishes a framework for development, final implementation remains subject to a Final Investment Decision and further agreements to be finalized within 12 months. This initiative follows a broader government-level framework agreement signed by Cyprus and Egypt in March. The project aims to bolster Egypt's role as a regional LNG hub and provides Cyprus with its first substantial step toward gas exports.