Atlantic, Europe and Mediterranean Basin (441 kb) - Investis

Train 1. The ELNG Train 2 Company is in
the process of being formed and will do
the same in relation to Train 2.
Following a Heads of Terms agreement
signed in January 2002, a LNG Sale and
Purchase Agreement was signed in
October 2002 for the sale of the entire
output of the 3.6 mtpa first train to Gaz
de France. Train 1 is scheduled to start
production in the second half of 2005.
In parallel to the commercial framework,
construction of Train 1 and the common
facilities started with an early works
programme in May 2002 and the full
EPC contract with Bechtel was signed in
September 2002. BG and its partners also
made progress securing project finance
of $1.15 billion for the construction of
Train 1 and common facilities with the
announcement in January 2003 of the
appointment of 12 international and
three Egyptian banks as International
and Egyptian Mandated Lead Arrangers
respectively.
At the same time as purchasing Edison’s
stake in the WDDM Concession, PETRONAS
also purchased its stake in the ELNG
project in June 2003.
Construction of Train 2 started in
May 2003. Early works commenced in
December 2002. In June 2003, BG and its
partners agreed principal terms for the
sale of the whole of Train 2 output to BG
Gas Marketing, a subsidiary of BG Group.
At the same time, the ELNG partners
signed the full EPC contract for Train 2 with
Bechtel. Train 2 is expected to start LNG
production in mid 2006. For approximately
the first year of production, the entire
output is intended to supply the Lake
Charles LNG import terminal in Louisiana,
USA. After that time, Train 2 volumes
can be switched to supply the proposed
LNG import terminal at Brindisi, Italy,
which is being developed by BG and
Enel (see page 39).
Nile Valley Gas Company (NVGC)
In 1998, BG and its partners signed a
25 year franchise agreement with EGPC
for the exclusive right to develop the
gas market in Upper Egypt. Formed in
September 1998 with BG as the lead
participant, the Nile Valley Gas Company
(NVGC) is undertaking development of
the gas market and infrastructure in
Upper Egypt, focusing around Beni Suef.
Phase 1, costing $38 million, has extended
the gas transmission network from south
of Kuriamat to Beni Suef, with first gas
deliveries achieved in March 1999. During
Phase 1, NVGC contracted with over
17 000 domestic customers and a number
of major industrial users.
Further information on the Nile Valley
Gas Company can be found on its
website, www.nilevalleygasco.com
ATLANTIC, EUROPE AND MEDITERRANEAN BASIN EGYPT 35
800
600
400
200
0
Scarab Saffron DCQ
(mmscfd)
Until
end 03
1 Jan
04
1 Jan
05
1 Jan*
06
* DCQ of 533 mmscfd unless 3 months have elapsed since first
ELNG shipment – will then be 633 mmscfd for 7 years
NOTES