By the OGJ Online Staff
HOUSTON, Sept. 21 -- BG Group PLC, Edison International SPA, and Egyptian General Petroleum Corp. have awarded the front-end engineering design contract for their proposed $900 million Egyptian LNG export project to US-based Bechtel Group Inc.
This is the first contract awarded for the project. It covers engineering and design of the liquefaction plant, storage tanks, and marine facilities.
The Idku plant, 50 km east of Alexandria, will be based on the Atlantic LNG plant in Trinidad and Tobago, in which BG owns an interest (OGJ Online, Apr. 9, 2001). That plant's capacity is 3 million tonnes/year, soon to triple with the completion of two trains under production.
The FEED contract will be complete in the first quarter 2002.
An Engineering, Procurement and Construction contract for the project will follow completion of the FEED and gas sales agreements. BG said Egyptian companies will have significant participation.
The first Idku LNG train is expected to be 3.6 million tonnes/year.
Frank Chapman, Chief Executive, BG Group PLC, said, "By conclusion of the FEED work, we expect to have in place gas sales agreements for the first train, allowing us to sanction the project. This fast track approach, in parallel with offshore development of our West Delta Deep Marine acreage, keeps us on target for first gas exports in mid-2005."
Joint venture company Egyptian LNG will build, own, and operate the LNG plant.