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- NewMed said all required signatures on the MoU have been completed, according to its filing with the Tel Aviv Stock Exchange and Israel Securities Authority.
- The next step is a Host Government Agreement with Egypt for development of the gas transportation system linking Aphrodite to Egypt’s network.
- Negotiations continue on a binding gas supply agreement, and the signed MoU does not yet constitute a final commercial agreement.
- A final investment decision is expected in the second half of 2027, with first gas production projected for around 2031.
The Aphrodite gas field has taken another step towards commercial development after NewMed Energy, Chevron and Shell, together with the Cyprus Hydrocarbons Company (CHC) and Egypt’s state-owned Egyptian Natural Gas Holding Company (EGAS), completed the signing of a Memorandum of Understanding (MoU) for the sale of the field’s natural gas to Egypt.
NewMed Energy announced that all required signatures had been completed on the MoU covering the sale of natural gas from the Aphrodite field, located in Cyprus’ exclusive economic zone (EEZ), to EGAS.
According to the company’s filing with the Tel Aviv Stock Exchange and the Israel Securities Authority, the agreement was signed by the field’s partners, CHC and EGAS.
Host country agreement next
The company said the next step will be the completion of the Host Government Agreement (HGA) with the Egyptian government, covering the development of the gas transportation system linking the field to Egypt’s gas network.
It also noted that negotiations are continuing on a binding gas supply agreement between the Aphrodite field partners and EGAS, meaning the signed MoU does not yet constitute a final commercial agreement.
The ownership structure of the Aphrodite gas field remains:
- Chevron Cyprus Limited: 35%
- BG Cyprus Limited (Shell): 35%
- NewMed Energy: 30%
Exports through Egypt
The connection to Egypt will enable the project to use the country’s existing gas transportation and liquefaction infrastructure, avoiding the need to construct standalone export facilities in Cyprus.
Part of the natural gas is expected to meet Egypt’s growing domestic demand, while the remaining volumes could be liquefied as LNG and exported to international markets, including Europe.
Final investment decision expected in 2027
The Aphrodite field, discovered in 2011 around 160 kilometres south of Limassol, received development approval from the Republic of Cyprus in early 2025.
The approved development plan includes a floating production and processing facility, four production wells during the initial phase and a maximum production capacity of approximately 800 million cubic feet of natural gas per day.
A final investment decision (FID) is expected during the second half of 2027, while first gas production is currently projected for around 2031, although these timelines remain subject to change.
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