US Supports Chevron in Gas Dispute with Cyprus: Cyprus and a group of multinational firms lead by Chevron are at odds with the US government. This new development adds geopolitics to a contest over a big offshore gas deposit. Two industry sources and a U.S. official said Friday that this recent step indicates that the U.S. corporation wants to connect the Aphrodite gas field to Egypt, which is nearby. Also, this newest occurrence illustrates that the U.S. corporation is making headway toward this goal.
Chevron (CVX.N) headed a group that proposed connecting the Aphrodite gas field to Egypt through an undersea link. Egypt would connect to the Aphrodite gas field. Egypt might sell the gas or transform it into liquid for Europe. This is because Europe is seeking energy sources other than Russia. Europe is exploring other energy sources to reduce its dependence on Russia.
Cyprus’ Energy Minister George Papanastasiou revealed that the administration has rejected this new scheme. A floating gas processing facility 160 kilometers (100 miles) off the southeast coast of Cyprus was scrapped from the competing concept. The Mediterranean Sea is the field.
The adjustment you made will not be considered now. Papanastasiou said the Republic of Cyprus expects the consortium would follow the 2019 agreement.
The Cyprus government is again in talks with Chevron’s Aphrodite partner, Israeli company NewMed (NWMDp.TA).
The US supports Chevron’s initiative to speed up gas delivery and reduce carbon emissions. This is why the US supports Chevron’s approach. The key rationale for this option is to avoid building many new facilities.
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This initiative to connect Egypt to the Aphrodite gas resource is vital for many reasons. It helps Egypt fulfill its peak gas demand during the summer heat wave. This strengthens Egypt’s economy. The link decreases tension, stabilizes the area, and allows gas to be sent to Europe, which is good.
The Biden administration separates expensive, pointless infrastructure projects from easy links to demonstrate their differences. These connections are needed to move to cleaner energy.
The Aphrodite gas field, discovered ten years ago, may contain 124 billion cubic meters of gas. Chevron is on all three teams working on this initiative with NewMed and Shell (SHEL.L).
Due to its gas reserves, the Eastern Mediterranean gas sector has seen a lot of investment in recent years. This gas field might bring in a lot of money. After Russia invaded Ukraine, Europeans began exploring for alternatives to Russian fossil fuels. After Europe began exploring for alternatives to Russian fossil resources, this hunt began.
Nicosia has objected to Chevron’s plan to dig three producing wells instead of five and not erect a movable production unit atop the field, according to industry sources.
A Chevron official stated the Aphrodite project will proceed in her latest statement. The Cyprus government received a new development plan to speed up field development and make it easier to send gas to Egypt and the world through LNG facilities on Egypt’s northern shore.
Chevron emphasizes the need of using the Aphrodite field properly in Cyprus, the Eastern Mediterranean, Europe, and the world market. Geopolitics and energy strategy complicate gas field growth. Adding Washington complicates a difficult process.
Our Reader’s Queries
Does Cyprus produce gas?
Cyprus is currently buzzing with activity, thanks to the numerous offshore gas fields that have been discovered in the past 15 years. The latest discovery was made in 2022. With this abundance of gas, there is hope that Cyprus will be able to establish a stronger presence in the Middle East.
Does Cyprus import gas?
Cyprus has recently announced a revised policy that involves importing natural gas from Israeli gas fields and its own Exclusive Economic Zone (EEZ). This move is aimed at utilizing the imported gas for electricity generation and liquefaction, which will enable Cyprus to export modular LNG to various markets, including Europe. With this new policy, Cyprus is set to become a major player in the global energy market.