EGYPT LNG PLANTS 

I wrote about this in 2020... I can say that presently there is a gas war either in the media or on site the gas wells in the Eastern Mediterranean Sea, among some countries.  The disputes are ignited either by ideological &/or economical reasons. In my brief article, I shall try to keep distance from the influence of both reasons to the maximum extent possible. So, here we go… 

EGYPT has two Liquefied Natural Gas (LNG) plants, details are provided as follows:

The First Plant 

It is located at the Damietta and called SEGAS (Spain Egypt Gas) where it is located around 60 km from Port Said. It has a production capacity of 5.5 million tons per year (mty). It was put in operation in late 2004. The Feed gas comes from West Delta Deep Marine (WDDM). The Shareholders are Spain-based Union Fenosa Gas S.A. (UFG) with 40%, Italy-based Eni with 40% and Egypt with 20%.  

The Second Plant

It is located at IDKU in the Beheira Governorate, where the capacity is 7.2 (mty) (daily input is 1130 MMSCFD) from Borollos and Rashid gas fields.  It was put in operation in 2005. The major Shareholders are The Netherlands-based Shell with 35.5%, Malaysia-based Petronas with 35.5%, Gaz De France with 5% and Egypt with 24%.

The information available from the internet, related to the plants is as below; 

The plants were put out of operation during the period 2011-2015 due to shortage of feed as the gas was diverted to the local market.

Consequently, the Partners lodged claims for compensation and UFG/ENI won the case at the US-based International Center for Settlement of Investment Disputes (ICSID), where the Arbitrator Body, The World Bank, awarded a compensation of US$ 2.01 billion to UFG/ENI!

On January 15, 2020, it was officially announced that gas pumping has started from the Leviathan offshore gas field, which is located about 150 km south west of the City of Haifa to IDKU LNG Plant for processing and exported by LNG Tankers. The cost of LNG ex-IDKU will be around US$ 7.0 per MMBTU (Million British Thermal Unit), while the published figures for the Russian gas to Europe are about US$ 6.0 per MMBTU.

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