Spain’s Union Fenosa seeks partner for Egyptian LNG venture
The Spanish Egyptian Gas Company (Segas), a subsidiary of Union Fenosa stated that it could sign as partnership contract for its one billion dollar liquefied natural gas (LNG) plant by the year’s end, reported Reuters.
According to Segas management, the chosen partner could take on the role of a shareholder or have minimal involvement as a gas supplier paying a fee for processing in LNG. The firm is in current talks with Royal Fip, TotalFinaElf and British Petroleum.
Union Fenosa intends to maintain a majority stake in the Segas project, a joint venture originally set up with the Egyptian Gas Company, now totally controlled by the Spanish firm. Inaugurated in 2001, the liquefaction plant is to become operative by September 2004.
The new facility, which will be located in the Port of Damietta, situated on the Mediterranean coast of Egypt, 40 kilometers west of the Suez Canal, will have an initial production capacity of 6.89 billion cubic meters (bcm) of gas per year.
Union Fenosa has signed an agreement with the Egyptian General Petroleum Corporation (EGPC) for the supply of up to eight bcm of gas per year for a period of 25 years, with an option to extend this period by another 25 years. — (menareport.com)
© 2002 Mena Report (www.menareport.com)