BP signed an agreement with Egyptian General Petroleum Corp. and ENI that provides for a LNG facility to be built at the port of Damietta by BP and ENI.
The latter two companies have agreed to buy the LNG for sale into the Mediterranean market.
The accord also establishes terms and conditions for the price that BP and ENI will pay for the gas supplied to the facility and sets out the commercial framework for the facility's construction and ownership.
Egyptian LNG is scheduled for delivery to markets in the second half of 2004.
Egypt's Petroleum Minister Sameh Fahmy described the agreement as "an important step toward 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."
© 2001 Mena Report (www.menareport.com)