Landmark agreement for Aphrodite field
Energy company NewMed Energy, a partner in Cyprus’ offshore Aphrodite gas field, announced on Thursday the signing of a 15-year agreement to supply natural gas to EGAS.
The deal covers the sale of all exploitable quantities from the Aphrodite field for up to 15 years from the start of commercial production, with an option to extend for an additional five years.
Subsea pipeline and infrastructure plans
The agreement includes the development of a subsea pipeline connecting Cyprus’ Exclusive Economic Zone with Egypt, with delivery set at facilities in Port Said.
A separate agreement with the Egyptian government regulates the construction, financing, and operation of the infrastructure. A dedicated company, Aphrodite Midstream Company, will be established to manage the pipeline.
The project also involves a series of additional agreements to be finalised within 12 months, alongside the critical Final Investment Decision (FID), both necessary for implementation.
Strengthening Cyprus–Egypt energy ties
The gas deal forms part of broader energy cooperation between Cyprus and Egypt, reinforced in March with a framework agreement on natural gas collaboration.
The development of the Aphrodite and Kronos fields enhances Cyprus’ position as an emerging energy hub in the Eastern Mediterranean.
Strategic and geopolitical impact
Strategically, the agreement strengthens Egypt’s role as a regional LNG hub, with Cypriot gas expected to be liquefied in Egyptian facilities and exported to international markets, particularly Europe.
For Cyprus, the deal represents the first substantial step towards exporting natural gas after years of delays.
Energy security amid regional tensions
The timing of the agreement reflects ongoing instability in the Middle East, which has disrupted oil and gas flows from the Gulf. In this context, the Cyprus-Egypt gas deal carries both economic and geopolitical significance, reinforcing Nicosia’s role in regional energy security.
Also read: Kronos gas route to Egypt adjusted
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