EIB announces major financing of Egyptian LNG plant
The European Investment Bank (EIB), the EU's long-term financing institution, is providing a loan of $372 million, for the construction of the first train of a liquefied natural gas (LNG) plant at Idku, some 40 kilometers east of Alexandria.
This loan, one of the largest ever financings provided by the Bank in the Mediterranean Partner Countries (MPCs) is provided under the Bank’s Facility for Euro-Mediterranean Investment and Partnership (FEMIP). The borrower, El Behera Natural Gas Liquefaction Company, is a joint venture bringing together major international gas groups British Gas, Petronas and Gaz de France with the public sector Egyptian General Petroleum Corporation (EGPC) and Egyptian Natural Gas Holding Company (EGAS).
The project involves technology transfer to Egypt through the participation of three major international companies. The gas comes from the West Delta Deep Marine concession and will be dedicated to export, through a 20-year take-or-pay agreement with Gaz de France, a well-known and experienced LNG off-taker. Priced competitively, the LNG is likely to find markets also elsewhere in the EU.
In exporting a part of the large Egyptian natural gas reserves, the project will benefit the country’s economy by generating substantial foreign exchange revenues. — (menareport.com)
© 2003 Mena Report (www.menareport.com)