Business News
Decision on Egypt's Damietta LNG plant in late 2007, early 2008
Jun 11, 2007, 15:47 GMT
Nicosia - The decision whether or not to proceed with an expansion of the Liquefied Natural Gas (LNG) plant in the Egyptian port Damietta is expected to be made by the partners later this year or early in 2008, the Middle East Economic Survey reported Monday.
The Cyprus-based weekly publication said that discussions had been ongoing between the parties, which would be able to focus on the planned development of a second train once the project financing for Train 1 has been completed.
Although the memorandum of understanding (MOU) to build the second 5-million-tons-a-year train at Damietta was signed over two years ago by the Italian Enis local subsidiary International Egyptian Oil Company (IEOC), BP and the Egyptian Natural Gas Holding Company (EGAS), implementation of the expansion has been delayed by complications over securing committed gas supplies.
Forecasts of a buoyant LNG market and the economies of scale to be gained from adding extra trains make it in the partners' interest to secure the additional 735 million cubic feet daily of feed gas that is required, the MEES report said.
© 2007 dpa - Deutsche Presse-AgenturCOMMENT
blog comments powered by DisqusLatest Headlines in Business
- 1. US unemployment drops further, but figures disappoint
- 2. Japan stocks down as euro debt outweighs positive US data
- 3. Iraq resumes oil flow after pipeline blast in Turkey
- 4. Spanish bond auction lifts eurozone worries, sinks Japan stocks
- 5. ECB holds rates, rules out early exit from emergency measures
Older Talkback
