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NewMed Energy (TASE: NWMD) has signed a memorandum of understanding (MOU) to sell 100 billion cubic meters (BCM) of natural gas to Egypt from the Cypriot offshore Aphrodite gas field.
Egypt is a huge gas consumer, and the shutdown of Israel’s Leviathan gas field for 32 days during to the war with Iran has led to power outages in Egypt.
The Aphrodite reservoir, which will be exported to Egypt via a floating platform and pipeline to the Nile Delta region, will help satisfy demand for gas that will only increase in the coming years due to Egypt’s population growth.
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NewMed said, “The agreement is valid for 15 years or until the end of commercial production from the reservoir, whichever comes first. In addition, the reservoir partnership will have the right to extend the agreement for an additional 5 years.”
The agreement will be implemented using a “take or pay” mechanism, meaning that the supply will be fixed, and Egypt will be forced to pay even when it does not need the full amount of gas in the agreement. The price will be linked to the price of a barrel of Brent crude oil, which is currently at a relatively high level and is expected to decline only gradually in the coming years.
The Aphrodite offshore gas field slightly extends into Israel’s economic waters, where it is called Yishai, and the Israeli and Cypriot governments are currently in negotiations to determine the precise boundary between the reservoirs to enable their development.
NewMed Energy CEO Yossi Abu said, “Today we mark another stage in the development of the Aphrodite reservoir. Approval of the MOU for the export of all natural gas from the Aphrodite reservoir is a critical step on the way to approval of a Final Investment Decision (FID) and the start of production. This agreement is proof that natural gas is a significant player in regional cooperation and has the power to strengthen Israel’s position. I believe it will provide further reinforcement on the way to further international agreements.”
Aphrodite has about 100 BCM of natural gas, slightly more than the “Karish” and “Tanin” reservoirs but less than the “Tamar” and “Leviathan” reservoirs. NewMed holds 30% of the reservoir, while Chevron and Shell hold 35% each.
Published by Globes, Israel business news – en.globes.co.il – on April 9, 2026.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2026.
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