The Royal Dutch/Shell Group of Companies (Shell) announced today that it has finalised a Concession Agreement with the Egyptian General Petroleum Corporation (EGPC) to allow the Fayum Gas Company, a Shell Gas B.V. subsidiary, to deliver natural gas to the Fayum Governorate in Egypt.
The agreement gives the Fayum Gas Company a 20 year franchise to study, design, finance, build and operate a natural gas transmission pipeline and distribution network, and to market natural gas to industrial and residential customers, on behalf of EGPC.
This follows the announcement last month that Shell is to acquire a minority stake in the NatGas concession which includes areas bordering on Fayum Governorate.
It was concluded with the support of the Ministry of Petroleum. His Excellency Eng. Sameh Fahmy, the Egyptian Minister of Petroleum, said: “Following the agreement last month, where Shell bought an interest in the NatGas concession, this illustrates yet again the attractiveness of the growing Egyptian gas business to foreign investors.
I am pleased that EGPC and the Fayum Gas Company have reached an agreement and expect the people of Fayum to see the benefits in the near future.”
This agreement demonstrates yet another step in Shell’s strategy to build a strong presence in the region. Charles Watson, Shell Gas and Power Director of Business Development in the region, said: “Shell made a significant move into gas distribution only a few years ago.
The Fayum project stamps our commitment to a growing business sector and demonstrates Shell’s determination to assist in the development of the countries in which it operates.”
The Fayum Gas Company is an Egyptian Joint Stock company incorporated in 2000 for the purpose of transmitting and distributing natural gas.
© 2001 Mena Report (www.menareport.com)