BP Amoco and EGPC in Two New Egypt Gas Projects

abarrelfullabarrelfull wrote on 09 Aug 2012 12:13
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07 June 2000

BP Amoco announced today that it is to move forward with the Egyptian General Petroleum Corporation (EGPC) on two major gas projects in Egypt.

A Letter of Intent has been signed relating to a two-development complex which will be located on the Mediterranean coast, close to BP Amoco's gas fields.

The developments will consist of a two-train Liquefied Natural Gas (LNG) project and a two-train Natural Gas Liquids (NGL) project.

The plan is to build a world scale NGL plant to quickly supply the growing Liquefied Petroleum Gas (LPG) demand in Egypt. First production of NGLs with delivery of LPG to the local Egyptian market is scheduled for early 2003.

Furthermore, a two-train LNG plant will be built to process and ship LNG to Mediterranean and other markets. First LNG shipment is expected during 2004.

Egypt's Minister of Petroleum, Engr Sameh Fahmi, said: "Signing this letter confirms the commitment of the government to pursue exports for Egyptian natural gas, reduce LPG imports and produce important NGLs. Gas exports are expected to lead to further growth in the gas industry and attract more foreign investment to Egypt.

"Early NGL production will accelerate the growth of our petrochemicals industry. Such giant gas projects will generate additional stream of revenues for Egypt as well as creating significant new employment opportunities."

David Nagel, President of BP Amoco in Egypt said: "This is yet another step in a series of co-operative agreements since 1996 between BP Amoco and EGPC to capture Mediterranean markets for Egyptian LNG and to maximise the value of Egypt's gas liquids.
"One of our key markets for Egyptian LNG is the fast-growing and liberalising Spanish market. BP Amoco is currently a gas marketer in the country. We were the first gas company to sell gas directly to an end-user within three months of being approved.

"In addition to Spain, BP Amoco is pursuing other markets, like Turkey where we have submitted a comprehensive LNG proposal to supply gas to the Izmir area on the western side of Turkey in September 1998. BP Amoco is a world leader in LNG and NGL production, supply, and marketing, with significant world wide supplies and markets which will serve Egypt's growing needs."

BP Amoco has been leading efforts in Egypt for an LNG project and NGL projects for the past few years, based on its position in Egypt as the largest hydrocarbon producer and the largest foreign investor in the petroleum sector. BP Amoco has invested more than $9 billion and produced more than 4.5 billion barrels of oil during the past 37 years in Egypt.

Minister Fahmi has previously announced that Egypt has 43.5 tcf of proven gas reserves with an upside potential of more than 100 tcf. These resources are more than sufficient to supply the domestic market. Furthermore, BP Amoco has a strong position in the Mediterranean and Nile Delta basins and an aggressive exploration and development program which will help in finding and proving these potential reserves.

Notes:
On 17 April, BP Amoco announced that it had signed an agreement with EGPC for the construction of a new NGL plant, with related storage and marine facilities, in the Gulf of Suez. This will be operational in October 2001.

BP Amoco in Egypt operates both oil and gas production in the Gulf of Suez and Western Desert, as well as gas production in the Nile Delta.

BP Amoco produces around 4.5 billion cubic feet of natural gas a day (bcfd), sells over 7 bcfd in North America, processes over 20 bcfd of gas and produces around 400,000 b/d of NGLs.


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