Cyprus Faces Low Profits from Aphrodite Gas as Chevron Raises Pipeline Tariff

Energy analyst Charles Ellinas warned that Cyprus could earn negligible profits from the Aphrodite gas field if it accepts Chevron’s latest demand for a $3 per mmbtu tariff on the pipeline segment that runs through Egyptian waters. The tariff, up from the previously agreed $1, applies to the portion of the pipeline owned by Chevron, its partners and Egypt’s state‑owned E‑Gas, while Cyprus itself does not participate in the pipeline. Chevron has signaled it is not in a hurry to develop Aphrodite, prioritising projects in Guyana, Venezuela and Israel’s Leviathan field. The company has also postponed its final investment decision until Cyprus and Israel resolve a long‑standing dispute over the reservoir’s maritime zone. With the front‑end design study due by year‑end, Cyprus may consider waiting or exploring integration with ExxonMobil’s plans to export Cypriot gas to Egypt, which could make a future LNG plant viable if combined gas volumes reach 15 tcf.