Israel’s NewMed Energy has announced that a term sheet has been initialed for the sale of all recoverable natural gas from Cyprus’s Aphrodite gas field, located in Block 12 offshore Cyprus, to the Egyptian Natural Gas Holding Company EGAS, together with a Host Government Agreement (HGA) covering a new offshore gas transmission project (NewMed Energy press release, 09/04/2026).
The proposed deal includes a long-term gas supply contract of up to 15 years (extendable by 5 years), with a peak contracted supply of around 700 mcf/d (~7.2 bcm/year) during the main production phase, according to the company’s press release. Gas would be transported through a new subsea pipeline linking the Cyprus-Egypt maritime border to an onshore terminal in Port Said (Egypt). A dedicated joint venture, the Aphrodite Midstream Company (AMC), will be created to build and operate the infrastructure.
The HGA defines the regulatory and fiscal framework for the project, with additional agreements to be finalized within 12 months, followed by a final investment decision (FID). The Egyptian government has expressed its support for the development. Both agreements remain non-binding and are subject to final approvals and signatures by all parties and the governments of Egypt and Cyprus, expected in the coming weeks.
Aphrodite field, discovered in 2011, holds an estimated 130 bcm of resources and has been under an exploitation license since 2019. Chevron operates the field (35%), alongside NewMed Energy (30%) and Shell (35%). In 2023, the consortium began drilling an appraisal well in the Aphrodite gas field. In December 2025, the Aphrodite partners approved the front-end engineering and design (FEED) phase for the field’s production systems and export infrastructure. A final investment decision is anticipated by 2027, with production potentially starting in 2031 (Enerdata Global Energy Research).