A new pipeline project between Cyprus and our LNG plants: The developers of Cyprus’ Aphrodite field plan to build a subsea pipeline linking the offshore gas reservoir to an Egyptian LNG processing facility, according to a statement from NewMed Energy.NewMed, Chevron, and Shell “have submitted an updated plan for development of the reservoir for the Cypriot government’s approval” that includes the pipeline project, the statement reads. The story was also picked up by Reuters.

REFRESHER- Chevron, NewMed and Shell earlier this month began drilling to appraise reserves at Aphrodite,which is thought to contain up to 129 bcm of gas. They said at the time that the appraisal well would take three months to finish. Chevron and Shell are equal 35% partners in the Aphrodite field while NewMed holds 30%. At least 50% of the output is slated for export.

We knew this was coming: Egypt and Cyprus have been talking about laying the pipeline for several years, which Oil Minister Tarek El Molla last year said would be up and running by 2025, though until now the companies working on the field have not disclosed plans to work on the link. Chevron in February reportedly requested permission from Shell to use its underutilized West Delta Deep Marine (WDDM) facilities on Egypt’s Mediterranean coast to process gas from Aphrodite, while NewMed has said it is “committed to finding a way to develop the Aphrodite reservoir via the Egyptian infrastructure and the liquefaction facilities there.”

Is the pipeline replacing a floating terminal? The Times of Israelsuggests the pipeline will replace earlier plans for a floating LNG terminal that would have allowed gas to be processed on-site and exported directly to Europe, bypassing our liquefaction facilities. The statement makes no mention of a floating terminal, but it does call the pipeline “a change to the fundamental project concept from the original plan” that will “accelerate and reduce the cost of development” at the field.

This would be good news for our LNG exports: Alongside a deep push into renewables and hydrogen, Egypt is trying to maximize its exports of natural gas as the EU looks for new energy suppliers to fill the gap left by the loss of Russian fossil fuels. The Oil Ministry is targeting a 40% increase in LNG exports by 2025, the bulk of which will be sent to Europe. BP and the Abu Dhabi National Oil Company (Adnoc) are also bidding for a 50% stake in NewMed — an acquisition in part aimed at building ever-closer gas ties between Israel (which already exports large amounts of gas here for liquefaction and re-export), Cyprus, and Egypt as a trio of gas producers serving European energy demand.

Cyrus wants LNG facilities of its own to transport Israeli gas: Cyprus wants to accelerate building a pipeline to Israel’s natural gas fields and acquire its own LNG facilities to transport it to Europe, the country’s energy minister told Bloomberg earlier this week.

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