The
Chevron-led consortium proposed connecting the Aphrodite gas field via a
subsea pipeline and existing infrastructure to Egypt, where the gas can be sold
in the domestic market or liquefied and shipped to Europe, which has largely
been cut off from Russian supplies.
Cypriot Energy Minister George Papanastasiou confirmed that
the government had rejected the latest plan, which omitted a previous proposal
to build a floating gas processing plant at the field which lies 160 kilometers
(100 miles) southeast of Cyprus.
"The modification has been rejected. The expectation of
the Republic of Cyprus is that the consortium honours what was mutually agreed
by the parties in 2019," Papanastasiou told Reuters.
The partners have engaged in a new round of talks with the
Cypriot government, Israel's NewMed, which is a partner in the Aphrodite field,
said earlier this week.
The United States is backing Chevron's plans, which it
believes will help to get gas to the market faster and with a lower carbon
footprint as it does not involve building large infrastructure.
"Connecting Aphrodite to Egypt will help them with peak
domestic consumption in the summer, add stability and reduce tensions in the
region, and allow exports for Europe," the US source said.
The
Biden administration is making the distinction between expensive and unnecessary
infrastructure projects and less work-intensive interconnections that are
necessary as economies transition to cleaner forms of energy, the source said.
Aphrodite, discovered more than a decade ago, holds an
estimated 124 billion cubic meters of gas. Chevron is a partner in the field
with NewMed and Shell.
Its
development would give a vital boost to the Eastern Mediterranean gas basin
which has attracted huge investment in recent years, particularly in the wake
of Russia's invasion of Ukraine as Europe sought to replace Russian fossil
fuel.
According to two industry sources, Nicosia objected to
Chevron's plans to drill three production wells rather than five and avoid the
construction of a floating production unit above the field.
A Chevron spokesperson said the consortium was working to
progress the Aphrodite project.
"We have submitted a modified development plan to the
Cypriot Government, which we hope will lead to the development of the Aphrodite
field and delivery of gas to Egyptian and global markets via existing LNG
(liquefied natural gas) plants on the north coast of Egypt."
"We believe it is important that Aphrodite is
expeditiously developed for the benefit of Cyprus, the Eastern Mediterranean
region and European and other international markets," Chevron said.
