BP Amoco PLC has signed a key letter of intent with Egyptian General Petroleum Corp. to build a gas processing complex on Egypt's Mediterranean coast. The complex will include a two-train NGL plant and a two-train LNG plant. Capacities were not disclosed.
BP Amoco said, "The plan is to build a world-scale NGL plant to quickly supply the growing liquefied petroleum gas demand in Egypt. First production of NGLs, with delivery of LPG to the local Egyptian market, is scheduled for early 2003."
The LNG plant will liquefy natural gas and ship LNG to Mediterranean and other markets. First deliveries are expected in 2004.
Egypt's Minister of Petroleum, Engr Sameh Fahmi, said, "Signing this letter confirms the commitment of the government to pursue exports for Egyptian natural gas, reduce LPG imports, and produce important NGLs. Gas exports are expected to lead to further growth in the gas industry and attract more foreign investment to Egypt.
"Early NGL production will accelerate the growth of our petrochemicals industry. Such giant gas projects will generate additional stream of revenues for Egypt as well as creating significant new employment opportunities."
David Nagel, president of BP Amoco's Egypt operations, said, "One of our key markets for Egyptian LNG is the fast-growing and liberalizing Spanish market." BP Amoco already markets some gas in Spain.
"In addition to Spain, BP Amoco is pursuing other markets, like Turkey, where we...submitted a comprehensive LNG proposal to supply gas to the Izmir area on the western side of Turkey in September 1998."
Fahmi says Egypt's proven gas reserves total 43.5 tcf, with an upside potential of 100 tcf.
On Apr. 17, BP Amoco announced a separate agreement with EGPC to construct an NGL plant on the Gulf of Suez. The company expects that plant to be operational in October 2001.