BG has acquired a 35% interest in Block 12 offshore Cyprus, which contains the Aphrodite discovery, for US$165 million. Noble Energy retains 35% and operatorship. We estimate Aphrodite holds 4.4 tcf of recoverable gas. Some of this gas will be required to meet Cypriot domestic market obligations, while the remainder will be exported via Egypt. The field was declared commercial earlier in 2015, but we hold it as a technical asset since there is no firm investment plans for the pipeline to Egypt. Project sanction remains some way off. Approval of the acquisition, negotiations for a pipeline JV, agreements on how much gas will go to Egyptian markets versus LNG export facilities, and LNG tolling fees are all critical-path. But it is possible that Aphrodite gas routed via ELNG will be cost competitive with US LNG.