Union Fenosa launches $1 billion LNG complex in Egypt

By the OGJ Online Staff

HOUSTON, Dec. 19 -- A unit of Spanish utility Union Fenosa awarded a joint venture led by Halliburton KBR an engineering, procurement, and construction contract for a $1 billion single train LNG complex with capacity of 5 million tons/year at Damietta port in Egypt.

The contract, awarded to the Halliburton Co. unit, JGC Corp. of Japan, and Tecnicas Reunidas SA of Spain, includes an option for a second train.

SEGAS, Union Fenosa's special purpose Egyptian operating company, expects the plant to be operational in the fourth quarter of 2004.

"In addition to being the largest capacity train and fastest developed LNG baseload plant, this project is expected to generate substantial export earnings for Egypt and establish Union Fenosa as a significant player in the natural gas industry," said Halliburton.

The work will be managed at the MW Kellogg Ltd. office in the UK and executed jointly from that office and the Tecnicas Reunidas offices in Madrid.

The JV will use the services of Soluziona, Union Fenosa's own services group, as well as employing the dedicated resources of contractors Petrojet and Egypt's Engineering for the Petroleum & Process Industries company.

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