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Oil & Gas

MEES: Chevron eyes exporting Cypriot gas via Egypt tie-in

Posted: February 19, 2023 at 12:56 pm   /   by   /   comments (0)

Chevron takes a step forward on plans to process Cypriot gas here: Chevron has officially requested permission from Shell to use its underutilized West Delta Deep Marine (WDDM) facilities on Egypt’s Mediterranean coast to process gas from Cyprus’ Aphrodite field, oil and gas publication MEES reports. Chevron is a 35% partner in the Aphrodite field, along with Shell (35%) and Israel’s NewMed Energy (20%). “We are committed to finding a way to develop the Aphrodite reservoir via the Egyptian infrastructure and the liquefaction facilities there,” MEES reports NewMed CEO Yossi Abu as saying during the Egypt Petroleum Show (EGYPS) last week.

Half of the field’s output is slated for exports: Chevron has reached an agreement with local authorities on behalf of its Aphrodite partners to export at least 50% of the field’s planned output, MEES reported, citing unnamed sources. The rest of the output will serve the country’s domestic needs.

Egypt and Cyprus are planning to lay a pipeline connecting the Aphrodite field to Egypt’s LNG facilities, where natural gas is liquified and exported to Europe, which is expected to be up and running by 2025. Egypt is the only country with LNG facilities in the Eastern Mediterranean, putting us in pole position to fill Europe’s energy supply gap as it rapidly transitions away from Russian fossil fuels.

Yes, but: Cairo is reportedly unwilling to allow Cypriot gas to take up a sizable portion of its export capacity. State gas company Egas is currently the sole exporter of LNG from Egypt and raked in a huge USD 8.4 bn in 2022 on the back of soaring international prices, according to MEES.