The consortium behind the development of the Aphrodite gas field off the coast of Cyprus has submitted a new development plan to the Cypriot government, with a projected cost of $4 billion, Reuters reports.
According to Israeli NewMed Energy, which is part of the consortium, the updated plan includes the construction of a floating production facility. This facility will operate above the Aphrodite reservoir to handle the production and processing of natural gas.
NewMed Energy is collaborating with Chevron and Shell on this project. The Aphrodite field is expected to produce up to 800 million cubic feet of natural gas per day at its peak. The gas will primarily be exported to Egypt, with plans also in place to convert some of it into liquefied natural gas (LNG) for global export.
European countries are viewed as the primary potential buyers of Cypriot gas. The opportunity gained prominence two years ago during the European gas crisis, when Chevron, Shell, and NewMed Energy were actively drilling at Aphrodite.
Cyprus’ Energy Minister Natasa Pilides highlighted Europe’s interest in Cypriot gas, noting that the European Union has committed to using natural gas as a bridge fuel until 2049 as part of its green transition. This commitment provides companies with the confidence to secure long-term contracts.
However, the development of the Aphrodite field faced delays due to negotiations over changes in the production sharing agreement between the partners and the Cypriot government. These negotiations were triggered by Chevron’s acquisition of Noble Energy, the original license holder.
With these issues now resolved, development of the Aphrodite field is expected to proceed. Similar progress is anticipated for other offshore gas discoveries near Cyprus, such as the Glaucus field, found by Exxon and Qatar Petroleum, and the Calypso field, developed by Eni and TotalEnergies.