Britsh Gas signs MoU for Tunisian power project
The BG Group has signed a Memorandum of Understanding (MoU) with the Tunisian government for the development of the $250 million Barca Power Project in the city of Sfax.
Subject to necessary authorisations from the Tunisian government, construction of the power plant is scheduled to begin in the second quarter of 2004 with full commercial operation expected in late 2006.
The 500 megawatt combined-cycle gas turbine (CCGT) power plant would be built adjacent to BG's Hannibal processing site, 21 kilometers south of Sfax, reported Tunisia Online. The plant would use up to 120 million standard cubic feet per day of unprocessed gas reserves from BG's offshore interests in the Miskar Concession and, potentially, the Hasdrubal gas/condensate discovery allowing BG to increase its annual gas sales.
Development of the Barca power plant would facilitate the acceleration of BG's existing Miskar field, where reserves have significantly increased following successful in-fill drilling and reappraisal in 2002. In addition, BG has confirmed its intention to install a Liquefied Petroleum Gas (LPG) plant at the Hannibal site to supply the Tunisian market. LPG would be bottled and distributed by a local Tunisian company.
BG also confirmed its intention to construct a 67 kilometres condensate pipeline from Hannibal to La Skhira to transport increased condensate from additional gas production from the Hasdrubal field. Engineering work is continuing to define these downstream projects, which are anticipated for commissioning in 2006. . — (menareport.com)
© 2004 Mena Report (www.menareport.com)