Chevron and Egypt have initialled a deal on the financial and commercial terms for Aphrodite gas. The agreement covers a link between the Cyprus field and Egypt’s gas network, the petroleum ministry said on Tuesday. Ministers from Egypt and Cyprus witnessed it at the MOC 2026 conference in Alexandria.
Aphrodite gas moves towards FID
At present, the project is in front-end engineering and design ahead of a possible final investment decision, a Chevron spokesperson said. Moreover, the new terms build on a 15-year binding term sheet signed in April. Under that deal, Egypt’s EGAS will buy all the gas the field can produce.
Chevron operates Aphrodite with a 35% stake. In addition, Shell holds 35%, and Israel’s NewMed Energy has 30%. However, Shell agreed in July to sell its Cyprus unit to Hungary’s MOL, subject to approvals.
Why Egypt wants the gas
First, once linked, the gas could serve Egypt’s home market. Alternatively, Egypt could liquefy it for export, depending on demand and project economics. In turn, that supports Egypt’s goal of becoming a regional gas hub.
Meanwhile, Cyprus Energy Minister Michael Damianos said the Cronos field should export to Europe. For that, it would use facilities linked to Egypt’s Zohr field and the Damietta LNG plant. Aphrodite gas, by contrast, will mostly help meet Egypt’s own demand.
Above all, new supply matters as Europe heads into winter. See our report on European gas prices.
For a deeper analysis, read: Chevron’s Aphrodite Gas Deal: Why It Covers Only a Quarter of Egypt’s Import Gap
