Arab Finance: Egypt has agreed to purchase the full production of natural gas from Cyprus’ Aphrodite field under a new set of agreements aimed at strengthening supply and supporting exports, according to an official disclosure.

The deal was finalized after the Egyptian Natural Gas Holding Company (EGAS) signed a term sheet with field partners NewMed Energy, Chevron, and Shell, alongside a host government agreement to develop a $2 billion subsea pipeline linking the Aphrodite field to Egypt’s coast.

Under the agreement, Egypt will secure around 100 billion cubic meters of gas over time from the 3.7 trillion cubic feet Aphrodite field. The volumes are expected to support both domestic consumption and exports, with gas directed to Egypt’s liquefied natural gas facilities in Idku and Damietta. The supply is also expected to help reduce Egypt’s liquefied natural gas import bill and limit reliance on pipeline gas imports.

The subsea transmission system will be developed and operated by Aphrodite Midstream, a special purpose company jointly owned by the field’s partners and an Egyptian government-appointed entity. Gas will be transported to Port Said through the pipeline, with initial volumes reaching up to 700 million cubic feet per day for six years, before shifting to more flexible levels.

The agreement is structured as a 15-year contract with an option to extend for an additional five years. Pricing will be linked to Brent crude, with both a floor and a ceiling mechanism.

The parties have up to 12 months to finalize the agreements, while Egypt’s parliament is expected to approve the fiscal framework within six months. A final investment decision is to be taken within 12 months of signing the final contracts.

Pipeline construction is expected to begin in 2027, with first gas from the Aphrodite field projected to reach Egypt by 2030.

Last month, The Egyptian Ministry of Petroleum and Mineral Resources inked an agreement with Chevron to accelerate the development and production of natural gas from the Cypriot Aphrodite field and link it to Egyptian infrastructure.

Furthemore, Egypt and Cyprus already signed a framework agreement to boost natural gas cooperation on the sidelines of the ninth edition of the Egypt Energy Show 2026 (EGYPES) that kicked off on March 30th in Cairo.