Egyptian LNG
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Historical Background

In 1995, the Egyptian General Petroleum Corporation (EGPC) signed a concession agreement with BG International Limited (BG) and Edison International (Edison) for exploration in the West Delta Deep Marine (WDDM) region in the North Eastern Mediterranean. Very successful drilling activity uncovered a world-class gas resource that carried substantially larger reserves than that the local market could absorb. As a result, in 2001, the concession agreement was amended to allow the partners to export gas as LNG.

In January 2002, heads of agreement were signed with Engie (previously GdF) for the sale of 3.6 million tonnes per annum (mtpa) of LNG for 20 years. Egyptian General Petroleum Corporation (EGPC), the Egyptian Natural Gas Holding Company (EGAS), BG Asia Pacific Holdings Pte Limited (an affiliate of BG International), Edison and GdF became the Sponsors of this new project and commissioned Bechtel to construct a single-train liquefaction plant matching the volumes to be sold to (Engie) GdF.

Construction of the plant began in 2002 using the ConocoPhillips Optimized Cascade Process. Later in the year, the WDDM owners negotiated the sale of the output of a second train, also with a capacity of 3.6 mtpa, to STASCO (Shell). Construction of Train 2 started 6 months behind Train 1.

In 2003, Edison sold its share in Egyptian LNG and the upstream WDDM concession to a subsidiary of the Malaysian National Oil Company, PETRONAS (PICL Egypt), who brought extensive LNG experience to the project and the company.