Egypt has agreed to purchase all production from Cyprus’s Aphrodite gas field once it comes online in about six years, as the North African country seeks to secure long-term supplies to meet growing demand.
The Egyptian Natural Gas Holding Company signed a preliminary agreement with the companies managing the Aphrodite field, the Cypriot state oil and gas company, and NewMed Energy, which holds a stake in the project, according to a statement.
The field’s partners and Egypt also agreed on a framework to develop a gas transmission system off Egypt’s coast.
Although production from the Aphrodite field is expected to begin in 2031, according to NewMed, Egypt is set to benefit from additional gas volumes as it has become a net importer due to rising demand and declining output from domestic fields. LNG imports have increased, and the country still relies on pipelines carrying gas from Israel.
Supplies from Israel recently resumed after a roughly one-month hiatus, as fields that had been temporarily shut down due to the war in the Middle East came back online. Similar disruptions in the past have prompted Egypt to secure additional LNG cargoes from international markets.
Cairo and the Aphrodite field partners will establish a company in Egypt called Aphrodite Midstream Company, which will be responsible for implementing the offshore gas transmission system, according to Thursday’s announcement.
NewMed holds a 30% stake in the Aphrodite field license, while Chevron and Shell each hold 35%, according to the company’s website.
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