aphrodite gas — All signatures have been secured for the memorandum of understanding (MoU) regarding the sale of recoverable natural gas from Cyprus’ Aphrodite field to the Egyptian Natural Gas Holding Company (EGAS). NewMed Energy Management Ltd made this announcement on Wednesday, signalling a significant step forward in the partnership.
- The ownership structure of the Aphrodite field remains unchanged; Chevron Cyprus Limited and BG Cyprus Limited each hold 35 per cent, while NewMed Energy owns the remaining 30 per cent.
The MoU, signed on July 22, includes the partners of the Aphrodite field, the Cyprus Hydrocarbons Company and EGAS. This agreement outlines the sale of all quantities of natural gas that can be produced from the Aphrodite field, situated in Block 12 of Cyprus’ exclusive economic zone.
NewMed Energy further indicated that the parties are nearing the completion of the Host Government Agreement (HGA) with the Egyptian government. This pivotal agreement will facilitate the development of offshore infrastructure necessary to transport natural gas from the Aphrodite field to Egypt.
In addition to the MoU, negotiations are underway for a binding gas sales agreement, which will govern the delivery of natural gas from Aphrodite to EGAS. This comprehensive approach aims to ensure a steady flow of resources once production commences.
The ownership structure of the Aphrodite field remains unchanged; Chevron Cyprus Limited and BG Cyprus Limited each hold 35 per cent, while NewMed Energy owns the remaining 30 per cent.
With the finalisation of this agreement, Egypt is set to purchase the entirety of Cyprus’ Aphrodite gas output, a move that brings renewed momentum to Cyprus’ hydrocarbons strategy. This long-term arrangement is expected to span at least 15 years, ensuring stable energy supplies for both nations.
Energy Minister Michael Damianos remarked on the significance of the MoU, stating that it represents more than just a commercial step; he referred to it as a “milestone.” He elaborated that the agreement paves the way for a final investment decision slated for January 2027, with the first gas expected to flow from Aphrodite around 2031.
