Chevron-led consortium, in charge of the development of Aphrodite field offshore Cyprus, has signed a non-binding memorandum of understanding (MoU) with the Egyptian national gas company EGAS for the export of gas from the field to Egypt.
The MoU was signed by Chevron-led consortium, the Cypriot government, the Cyprus Hydrocarbons Company (CHC), the Egyptian government and the Egyptian national gas company EGAS.
The non-binding agreement outlines the framework for continued negotiations in connection with the export of natural gas from the Aphrodite field to Egypt, including the construction of the required transmission infrastructure and the sale arrangements.
Chevron Cyprus is the operator of the Aphrodite development, with Israeli firm NewMed Energy, and BG Cyprus, part of Shell, as partners.
According to the MoU, EGAS will serve as the sole buyer of the natural gas produced from the Aphrodite reservoir, while the partners shall be granted an option to purchase specific quantities of the gas that is sold to EGAS as liquefied natural gas (LNG).
The MoU also includes principles regarding the construction of the required transmission infrastructure and the sale arrangements, which shall be established in detailed agreements intended to be signed between the parties in due course.
To remind, the Cypriot government approved the updated plan for the Aphrodite gas field on February 14, which will see the construction of a floating production unit (FPU) and a pipeline for exporting gas to Egypt.
Aphrodite holds an estimated at 3.5 trillion cubic feet of gas. It is located in the area of Block 12, around 170 km offshore Limassol in Cyprus.
The supply of natural gas from the Aphrodite gas field is expected to commence in 2031.