Shell International Gas Ltd. has finalized an agreement with Egypt Kuwait Holding Co. to transfer 18% of NATGAS Inc. shares from EK Holding to Shell Gas BV.
NATGAS holds a 20-year concession from Egyptian General Petroleum Corp. to study, finance, design, build and operate a natural gas transportation and distribution network and market natural gas to residential, commercial, and industrial customers in the Governorates of Cairo, Giza, Alexandria, and Beheira, the Sixth of October Industrial City, and Borg Al Arab Industrial City.
NATGAS's concession agreement with EGPC was granted in March 1998.
Eng Sameh Fahmy, the Egyptian minister of petroleum, said: �As a regional leader in natural gas business with confirmed reserves in excess of 50 tcf, Egypt is well positioned to promote the vast potentials inherent in the natural gas industry. The agreement is in line with our policy to strengthen our domestic gas industry by inviting international companies bringing additional know-how and financial capabilities. It also demonstrates the dynamism and attractiveness of our growing domestic gas business. I�m pleased that EK Holding and Shell have reached an agreement.�
EK Holding is cofounder of and a majority shareholder in NATGAS.
Nasser Al-Kharafi, chairman of EK Holding, said: �This cooperation with a major international company like Shell capitalizes on the positive investment climate in Egypt. Such cooperation will assist NATGAS in its expansion plans and will provide Egypt through NATGAS with world-class technology in the natural gas distribution business.�