The BG Group and its partners have announced that the start of the Engineering, Procurement and Construction (EPC) early works program for the proposed second train of the Egyptian LNG (ELNG) project has been authorized.
Train 2 is expected to cost approximately $550 million.
The early works program, consisting of detailed engineering, procurement of long lead-time items and site preparation work, is expected to be completed early in the third quarter of 2003, converting into the Train 2 EPC contract disposed thereafter.
Bechtel of the US, which is undertaking the $900 million EPC of Train 1, will carry out the early works using their design and construction subcontractors including Egyptian General Petroleum Corporation (EGPC) affiliates, Petrojet and Enppi.
The $1.35 billion first train is designed to produce 3.6 million tons per annum of liquefied natural gas (LNG). The second train envisages output doubling in size at the plant, located at Idku, approximately 50 kilometers east of Alexandria. Both trains will be built using the Phillips liquefaction technology and will share storage and marine facilities.
Marketing of Train 2 output has reached an advanced stage. It is expected that negotiations will conclude during the first part of the early works program and fully termed agreements will be signed after this. European and US buyers have expressed strong interest in purchasing Train 2 output.
The partners in ELNG Train 2 are BG Group, Edison International, EGPC and the Egyptian Natural Gas Holding Company (EGAS). BG Group, Edison International and EGPC are also the gas sellers. The gas for Train 2 is planned to come from fields in the BG-operated West Delta Deep Marine (WDDM) Concession, offshore the Nile Delta.
BG Group has been active in Egypt since 1989 and has achieved a highly successful record in the country via investments in both the upstream and downstream sectors. As well as its involvement in ELNG, the Group is involved in the development of the offshore Rosetta Concession, which came on-stream in January 2001 and delivers gas into the Egyptian national grid under a 25-year agreement with EGPC. — (menareport.com)
© 2003 Mena Report (www.menareport.com )