Newsroom
Cyprus has taken another step towards developing the Aphrodite natural gas field after a key agreement was signed for future gas sales to Egypt.
The Memorandum of Understanding (MoU), signed on 22 July, covers the sale of all the natural gas expected to be produced from the Aphrodite field in Block 12 of Cyprus' Exclusive Economic Zone (EEZ). The agreement was signed by the field's partners, the Cyprus Hydrocarbons Company (CHC), and the Egyptian Natural Gas Holding Company (EGAS), according to an announcement by NewMed Energy.
The companies are now working on a final, legally binding agreement that will set out the terms for supplying the gas to Egypt.
Another important agreement is also expected in the coming weeks. The Egyptian government is due to sign a Host Government Agreement (HGA), which will allow the development of offshore infrastructure needed to transport natural gas from the Aphrodite field to Egypt for processing and use.
For Cyprus, the project is an important part of plans to make use of the country's offshore natural gas resources. Selling gas to nearby Egypt, which already has facilities to process and export natural gas, is seen as the quickest way to bring the Aphrodite field into production.
The Aphrodite field is jointly owned by Chevron Cyprus Limited and BG Cyprus Limited, each with a 35 per cent stake, while NewMed Energy holds the remaining 30 per cent.
