EGPC awards 20-year gas franchise to Shell company

Egyptian General Petroleum Corp. has awarded Fayum Gas Co., a subsidiary of Shell Gas BV, a 20-year franchise to deliver natural gas to the Fayum Governate, 35 km southwest of Cairo. Fayum will study, design, finance, build, and operate a gas pipeline and distribution network.

March 19, 2001

By the OGJ Online Staff

HOUSTON, Mar. 19�Egyptian General Petroleum Corp. has awarded Fayum Gas Co., a subsidiary of Shell Gas BV, a 20-year franchise to deliver natural gas to the Fayum Governate, 35 km southwest of Cairo.

Fayum will study, design, finance, build, and operate a pipeline and distribution network and will market gas to industrial and residential customers on behalf of EGPC.

Shell recently announced it acquired a minority stake in the Natgas concession, which includes areas bordering on Fayum Governate (OGJ Online, Jan. 31, 2001).

Sameh Fahmy, the Egyptian Minister of Petroleum, said, �Following the agreement last month, where Shell bought an interest in the NatGas concession, this illustrates yet again the attractiveness of the growing Egyptian gas business to foreign investors. I am pleased that EGPC and the Fayum Gas Co. have reached an agreement and expect the people of Fayum to see the benefits in the near future.�

Fayum Gas Co. is an Egyptian joint stock company incorporated in 2000 for the purpose of transmitting and distributing gas.