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Cyprus, Egypt Sign Accord for Gas Pipeline

Floating excavators prepare an underwater trench for the North Stream 2 pipeline close to Lubmin, Germany, May 15, 2018. REUTERS/Axel Schmidt
Floating excavators prepare an underwater trench for the North Stream 2 pipeline close to Lubmin, Germany, May 15, 2018. REUTERS/Axel Schmidt
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Cyprus, Egypt Sign Accord for Gas Pipeline

Floating excavators prepare an underwater trench for the North Stream 2 pipeline close to Lubmin, Germany, May 15, 2018. REUTERS/Axel Schmidt
Floating excavators prepare an underwater trench for the North Stream 2 pipeline close to Lubmin, Germany, May 15, 2018. REUTERS/Axel Schmidt

Cyprus and Egypt on Wednesday signed an agreement paving the way for the Mediterranean’s first subsea pipeline to carry natural gas from the island’s "Aphrodite" offshore field to Egypt for re-export to Europe.

"Today’s signing is an important milestone, not only for Cyprus but also the entire eastern Mediterranean region," said Cypriot Energy Minister George Lakkotrypis after he signed alongside visiting Egyptian Oil Minister Tarek el-Molla.

He said the agreement, "the first of its kind in our shared region", was crucial for channeling gas from the "Aphrodite" field to Egypt and to attract multi-billion-dollar infrastructure investments.

A joint committee would be set up in 30 days to oversee the project.

Texas-based Noble Energy in 2011 made the first discovery off Cyprus in the Aphrodite block estimated to contain 4.5 trillion cubic feet (130 billion cubic feet) of gas but it has yet to be extracted.

Cyprus aims for natural gas to start flowing to Egypt’s LNG facilities in 2022, thus generating its first revenue from natural gas.

The island has also issued exploration licenses to ENI of Italy, the US firm ExxonMobil and France’s Total.

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‘Micron Technology’ Raises Forecast for Fourth-Quarter Revenue, Profit

Micron Technology's solid-state drive for data center customers is presented at a product launch event in San Francisco, US, October 24, 2019. Reuters 
Micron Technology's solid-state drive for data center customers is presented at a product launch event in San Francisco, US, October 24, 2019. Reuters 
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‘Micron Technology’ Raises Forecast for Fourth-Quarter Revenue, Profit

Micron Technology's solid-state drive for data center customers is presented at a product launch event in San Francisco, US, October 24, 2019. Reuters 
Micron Technology's solid-state drive for data center customers is presented at a product launch event in San Francisco, US, October 24, 2019. Reuters 

Micron Technology on Monday raised its forecast for fourth-quarter revenue and adjusted profit, banking on surging demand for its memory chips used in artificial intelligence infrastructure, sending its shares up about 5% before markets closed.

Semiconductor makers such as Micron have seen a surge in orders for their high-bandwidth memory (HBM) chips due to their intensive data-processing capabilities, as large tech firms ramp up AI data center investments, according to Reuters.

The company now expects quarterly revenue of $11.2 billion, plus or minus $100 million, compared with its previous forecast of $10.7 billion, plus or minus $300 million.

Micron also nudged up its adjusted gross margin forecast to 44.5%, plus or minus 0.5%, for the fourth quarter, compared with its prior expectation of 42%, plus or minus 1%.

The company said the revised forecast reflects improved pricing, particularly for dynamic random access memory or DRAM products.

Supply constraints in HBM production and strong AI demand have enabled Micron to command higher prices for its products, representing a shift where historically memory chipmakers had to accept thinner margins, eMarketer analyst Jacob Bourne said.

Reuters exclusively reported on Monday Nvidia supplier SK Hynix sees the market for specialized AI memory chips growing 30% a year until 2030.

The imposition of a 100% tariff on some chips imported into the US could hit growth, but the duties will not apply to companies manufacturing in the country or have committed to do so.

In June, Micron said it is expanding its US investments by $30 billion, totaling $200 billion.

Micron expects adjusted fourth-quarter earnings of $2.85 per share, plus or minus 7 cents, compared with its earlier expectation of $2.50, plus or minus 15 cents.