Thursday 19 backend.Sep
The Egyptian government has reached an agreement with the Italian energy company Eni to build a stationary gasification unit. This contrasts with a floating unit currently under negotiation. The fixed unit will be used to receive imported liquefied natural gas (LNG) shipments and convert them back into gaseous form.
The unit will be constructed on
land neighboring the Damietta liquefaction plant, a joint venture between
Egypt's Natural Gas Holding Company (EGAS) and Italy's Eni, according to a
government official, who spoke with a reporter from Asharq Business-Bloomberg,
and requested anonymity.
Last June, Egypt contracted 21
liquefied natural gas (LNG) shipments for the summer months. Additionally, five
emergency shipments were procured earlier this year. However, the recent
announcement of a new tender signals that electricity consumption, fuelled by
natural gas and diesel, has exceeded government projections.
Egypt and Jordan are jointly
exploring the possibility of contracting an international company to build a
floating gasification unit.
The government official told
Asharq Bloomberg that the estimated cost of the unit is around $150 million. It
will help bridge the gap between Egypt's domestic gas production and
consumption.
Egypt's daily natural gas
production currently stands at approximately 4.6 billion cubic feet, while
domestic consumption reaches 6.2 billion cubic feet per day.
To address this gap, the Natural Gas Holding Company has contracted with an international consultant to conduct feasibility studies on establishing a gasification unit. The consultant will also assess the potential of utilizing the liquefied gas storage facility at the Damietta liquefaction plant, which has a capacity exceeding 160,000 cubic meters.
