Technip to tie in ELNG gas feedstock

04 July 2003
Paris-based Technip-Coflexiphas been awarded the $300 million engineering, procurement, installation and commissioning (EPIC) contract for the subsea development of the Simian/Sienna field in the offshore West Delta Deep Marine (WDDM) concession. Output from the field will be used as feedstock for train 1 of the liquefied natural gas (LNG) complex being built at Idku, to the east of Alexandria. The contract also provides for an estimated $200 million option, to be exercised at the discretion of the client - Burullus Gas Company- to install additional subsea facilities for the neighbouring Sapphire field (MEED 6:9:02).

The other bidders for the contract included Saipemof Italy and the Norwegian/French Stolt Offshore, which is the main contractor on the deepwater elements of the nearby Scarab and Saffron fields. Technip will be responsible for tying in the Simian/Sienna field with facilities in the Scarab/Saffron system, which is already supplying gas for the domestic market at a rate of 330 million cubic feet a day (cf/d). Simian/Sienna will deliver feedstock for the first 3.6 million-tonne-a-year train at Idku when it comes on stream in 2004. Each system is expected to produce more than 600 million cf/d of natural gas at full capacity. The Sapphire field will be tied in at a later date before the second train at Idku comes on stream (MEED 26:8:02).

Burullus is a joint venture between BG Groupof the UK, Egyptian General Petroleum Corporation (EGPC) and Edison Internationalof Italy. The same three parties, together with the Egyptian Natural Gas Holding Company (Egas)and Gaz de France, are partners in Egyptian LNG(ELNG), which is in charge of the Idku complex. Edison is transferring its upstream and downstream assets in the project to Petronas of Malaysia, after agreeing to sell its 50 per cent stake in the West Delta concession and its 35.5 per cent stake in ELNG to the company in late April. The $1,750 million sales agreement is awaiting approval by the Egyptian government (MEED 2:5:03).

The WDDM concession has so far yielded 16 consecutive discoveries of gas condensate. Holding some 370 billion cubic metres (13 trillion cubic feet) of proven reserves, it is the largest offshore integrated natural gas project in the Mediterranean (MEED 10:1:03).

This latest contract marks a shift by Technip into upstream offshore work in Egypt. Until now the company has been chiefly engaged in downstream refinery work at Alexandria, Ameriya and Suez.

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