Eric Watkins
OGJ Oil Diplomacy Editor
LOS ANGELES, Nov. 4 -- Egypt’s state-owned Egyptian Natural Gas Holding Co. (Egas), clarifying earlier comments, reported that BP PLC and Eni SPA have found just 2 tcf of gas, or half the amount needed to start up an LNG train at Damietta.
For the proposed second train to start up, said Abdallah Abdelhady, Egas assistant vice-chairman for production, the two firms have to find a total of 4 tcf of gas. Once they have done so, he said, the second train will start.
An Egas official said last week that the firm had shelved plans for the construction of a second LNG train at Damietta until enough reserves are found.
“If the Egyptian government is given proven gas reserve certificates then it will deal with the project in a more positive manner because we have a lot of commitments with domestic demand,” said Hassan Sabry, an Egas projects and planning official.
Shamil Hamdy, undersecretary at the oil ministry, was earlier quoted as saying that Eni had delayed the project because it lacked the necessary financing due to the global economic downturn (OGJ Online, Oct. 30, 2009).
Contact Eric Watkins at [email protected].