Egyptian General Petroleum Company (EGPC) has signed in Cairo an agreement for the development of a LNG plant in Egypt and its marketing with Eni - through its subsidiary Snam S.p.A. and BP.
The plant will be built on the Egyptian Mediterranean coast in the area of Damietta harbor and will have an initial capacity of about 4,5 billion cubic meters per year. Production is expected to start in 2004.
The agreement envisages the set up of a Project Company by EGPC , Eni and BP for the planning, construction and management of the infrastructure.
Eni and BP will carry out the marketing of the LNG produced by the plant, mainly in the Euro-Mediterranean markets.
The agreement will enable to market the increasing quantities of natural gas coming predominantly from the offshore fields in the Nile Delta where Eni, which is the largest international natural gas producer in Egypt, has exploration and development licenses together with BP.
Egypt's petroleum Minister, Engineer Sameh Fahmy, described the agreement as "an important step towards establishing a major gas export facility for Egypt which will greatly help realize the Government's strategy of maximizing the value of Egypt's gas while ensuring the domestic market is fully satisfied now and in the future. We are very pleased to have reached this agreement with two of the world's major oil and gas companies".(Al-Bawaba-MEBG)
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