First contracts awarded on Idku LNG

23 August 2002

The first major contracts have been awarded on the first train of a planned liquefied natural gas (LNG) complex at Idku, east of Alexandria. The contracts are being placed by Bechtelof the US, which is working on the engineering, procurement and construction (EPC) contract on a limited release basis. The client, Egyptian LNG (ELNG), is expected to sign the EPC contract formally with Bechtel in the next few weeks (MEED 28:6:02).

It is understood that Italy's Nuovo Pignonehas been awarded the compressors package, and that the storage tanks package has gone to Japan's Mitsubishi Heavy Industries, with the local Petrojet.

Banks are also preparing to submit proposals for the $1,150 million financing for the project. The financing will include a $450 million loan from the European Investment Bank, to be underwritten by international banks. The remainder is expected to come from international and local banks (MEED 9:8:02, Banking & Finance).

ELNG's principal partners are BG Groupof the UK and Edison Internationalof Italy. The other shareholders are Gaz de France- the first train offtaker - Egyptian Natural Gas Holding Companyand Egyptian General Petroleum Corporation. ELNG is understood to have held discussions with several potential partners for a second train at the Idku complex.

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