NewMed, Chevron, Shell to Supply Cyprus Gas to Egypt Under Long-Term Deal

A consortium led by NewMed Energy, alongside Chevron and Shell, has inked a memorandum of understanding (MoU) to export about 100 billion cubic meters of natural gas from Cyprus’ offshore Aphrodite gas field to Egypt.

Under the agreement, the full output of the field will be directed to the Egyptian market, reflecting the country’s growing demand for energy. Egypt has faced increased pressure on its power supply, particularly after disruptions linked to regional tensions and temporary shutdowns in key gas sources.

The gas is expected to be transported via a floating production facility and pipeline network to the Nile Delta, helping to meet rising consumption driven by population growth and economic activity.

The deal is structured to run for 15 years, with the possibility of a five-year extension. It will operate under a “take-or-pay” model, requiring Egypt to pay for agreed volumes regardless of actual consumption, with pricing tied to global benchmarks such as Brent crude oil.

The project marks a key step toward final investment approval and eventual production, underscoring the growing role of natural gas in regional energy cooperation. The Aphrodite field holds an estimated 100 billion cubic meters of gas, with ownership split between NewMed Energy (30%) and both Chevron and Shell (35% each).