The Egyptian Ministry of Petroleum and Mineral Resources is to rerun ADCO and Damietta gas liquefaction factories by 2020/ 2021, according to Daily News Egypt. Oil Minister, Tarek El Molla, said that the gas which will be delivered to the factories was estimated at 750mcf/d.
The minister further informed that the project aims to develop gas reserves estimated at 351bcf/d, and 3.4m barrel of condensates, with overall investments worth nearly $1.1b.
According to a new deal, Egypt will have 48% of the project, while its foreign partners, Spanish Union Fenosa and CGas will keep a 52% stake in Damietta’s factory. The agreement to reopen factories comes after the two Spanish companies froze the international arbitration suit against the Egyptian government.
Meanwhile, Dutch Shell, the owner of ADCO, agreed to provide 125mcf/d of gas to run the factory, as the Egyptian government will schedule the payment of the dues it owes to the company. In addition, gas prices of phase 9B in Shell’s Borollos fields were adjusted. Shell thus agreed to direct gas shipments to exports. The contractual export amount for ADCO is estimated at 1.13bcf/d of gas.