Egypt’s SEGAS LNG Startup                          January 2005

LNG world has welcomed Egypt as a new exporter to its ranks. The Spanish Egyptian Gas Company (SEGAS) started producing LNG early December 2004, and loaded the first export cargo of LNG from Egypt on January 20th 2005.

The shipment was carried by the C?diz Knutsen tanker, one of the two ships chartered long-term by Union Fenosa Gas to carry LNG from the Damietta liquefaction plant. The ship carried 136,000 m3 and arrived at the Huelva regasification terminal in Spain on 27 January 2005.

The Damietta LNG plant, at present the largest single train facility in operation worldwide, is developed, operated and owned by SEGAS (80% Union Fenosa Gas, 10% EGAS and 10% EGPC) is finalising preparations for commercial operation. The plant has one liquefaction train with a capacity of approximately 7.5 bcm/year. Tangible investment in the plant amounts to approximately 1.2 billion dollars. More than 40 qualified Egyptian contractors and up to 7,000 skilled workers have participated in the construction. The total number of man-hours projected for the whole project is 35 million.

It is worth mentioning that Spain is Egypt’s second export destination for its natural gas. Since July 2003 quantities of Egyptian natural gas have been going to Aqaba in Jordan through the Inter-Sinai pipeline as the first state in a regional network that will be extended to Lebanon, Syria and possibly to Turkey and Cyprus in a gas network.