The Aphrodite gas field has entered into a binding term sheet to supply natural gas to the Egyptian Natural Gas Holding Company (EGAS) for a period of 15 years, according to an official disclosure by NewMed Energy.
The agreement provides for the sale of the field’s entire recoverable gas volumes to EGAS under a long-term arrangement, with an option to extend for an additional five years. Production is expected to reach approximately 800 million cubic feet per day at peak capacity, operating under a “take-or-pay” structure, with pricing linked to global energy benchmarks, including Brent crude.
The “take-or-pay” mechanism—widely used in energy contracts—obligates the buyer to pay for a minimum agreed volume regardless of actual offtake, thereby ensuring stable revenue streams for suppliers and mitigating demand volatility risks.
The Aphrodite field is being developed by a consortium comprising Chevron, Shell, and NewMed Energy. However, the commencement of supply remains contingent on a final investment decision and the completion of development works.
The agreement aligns with a broader bilateral framework between Egypt and Cyprus to establish a subsea pipeline exceeding $2 billion in cost. The planned 170-kilometre pipeline across the Mediterranean will transport gas from the Aphrodite field to Egypt, where it will be processed for domestic consumption, with surplus volumes directed toward export via liquefied natural gas (LNG) facilities.
The project comes at a critical time for Egypt, which is managing a widening gap between production and consumption. Current domestic gas output has declined to approximately 4.1 billion cubic feet per day, against demand exceeding 6 billion cubic feet—particularly during peak summer months.
Discovered in 2011, the Aphrodite field is estimated to hold around 4.4 trillion cubic feet of natural gas but has yet to enter full development.
As The Middle East Observer notes, the agreement underscores Egypt’s strategic positioning as a regional gas processing and export hub, while reinforcing Eastern Mediterranean energy integration amid evolving supply dynamics.
