Agreement reached on Egypt LNG Export Project

abarrelfullabarrelfull wrote on 16 May 2012 13:15

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3 April 2000

An agreement covering the future development of a liquefied natural gas (LNG) export project in Egypt has been signed by the Egyptian General Petroleum Corporation (EGPC), BG International and Italy's Edison International.

The agreement envisages the sale of gas from the West Delta Deep Marine Concession (WDDM) offshore the Nile Delta, to a natural gas liquefaction plant constructed, owned and operated by BG International, Edison International and Egyptian shareholders, including EGPC. The LNG plant is planned to be located near Idku, east of Alexandria.

In August 1999, BG International and Edison International signed a gas sales agreement with EGPC to develop Scarab/Saffron, Egypt's largest gas field, in the WDDM to supply the domestic market. Signature of the agreement announced today paves the way for the development of additional proven and uncontracted reserves discovered last year in WDDM for the export project. These and future developments in this highly prospective concession will be integrated through the installation of a single offshore pipeline system.

The first LNG train is due to come on stream as early as 2004, with further trains to follow, subject to market demand and the closure of gas sales agreements. Discussions are currently underway with several LNG buyers in the Mediterranean region.

Details of the LNG project will be finalised in coming weeks with further agreements due to be signed in the summer.

Notes to Editors

BG International, the exploration and international gas supply business of BG Group plc, has been active in Egypt since 1989 and, having achieved major growth and diversification, has significant activities throughout the gas business. These include developing the Rosetta and Scarab/Saffron gas fields, and developing the gas market and pipeline infrastructure in Upper Egypt.

Edison International is the international oil and gas company of Edison, Italy's only energy group involved in the production, transportation and sale of both electric power and natural gas. Edison International has been present in Egypt since 1993 and is BG's partner in the Rosetta and WDDM concessions and, together with other local partners, in the gas transportation and distribution business through the Nile Valley Gas Company. Edison is also building a 680MW power plant in partnership with Intergen in Sidi Krir, near Alexandria.

The Egyptian General Petroleum Corporation is the State corporation that implements plans and policies relating to oil and gas operations in Egypt. EGPC co-ordinates these activities through its participation in companies involved in exploration, production, refining, processing, petrochemicals, distribution and transportation.

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