By OGJ editors
HOUSTON, Jan. 7 -- BG Group PLC and its partners reported Monday that they have received authorization to start the engineering, procurement, and construction (EPC) phase of the $550 million proposed Egyptian LNG (ELNG) second train.
The initial phase, consisting of detailed engineering, procurement of long-lead-time items, and site preparation work, is scheduled to complete early in the third quarter, whereupon the Train 2 EPC contract will commence.
"Taking this key step in the realization of Train 2 allows BG Group and its partners to build on the rapid progress of the first train of Egyptian LNG," said Martin Houston, BG executive vice-president. "The project maintains its fast-track schedule, with the first shipment of LNG from Train 1 on target for the third quarter of 2005 and Train 2's. . .first production for mid-2006. This aggressive timetable maximizes the project's value to Egypt and to the partners," Houston said.
US engineering firm, Bechtel Inc., which is undertaking the $900 million EPC of Train 1, will carry out the preliminary work using its design and construction subcontractors, including Egyptian General Petroleum Corp. (EGPC) affiliates Petrojet and Enppi.
The $1.35 billion first train, which is under way, is designed to produce 3.6 million tonnes/year of LNG, all of which has been sold to Gaz de France under a 20-year agreement (OGJ Online, Jan. 21, 2002). The second train will double output at the plant, which is located at Idku 50 km east of Alexandria.
Marketing of Train 2 output also has reached an advanced stage, with European and US buyers expressing strong interest in purchasing Train 2 output, BG said. The signing of full-term agreements is expected after negotiations conclude during the first part of the early works program.
Both trains will be built using the Phillips liquefaction technology and will share storage and marine facilities. The site can accommodate up to five trains.
The partners in ELNG Train 2 are: BG Group 38%, Edison International 38%, EGPC 12%, and the Egyptian Natural Gas Holding Co., 12%.