The Project is located in Port Said and it relies on the natural gas produced from North East Mediterranean fields (Al Temsah, Port Fouad, Habi, and Akhen) to extract natural gas derivatives. It is designed to process 1100 million cubic feet per day to produce 300 thousand tons of LPG for the local market, 280 thousand tons of propane for export, and million barrel per year of condensates, and to supply the olefin complex in the future with Ethane/Propane mixture by 400 thousand tons per year. Production started up and the first shipment of Propane was exported in January 2005 .The production of the plant till November 2009 is as follows:
1476 thousand tons of Propane for export
1180 thousand tons of LPG for local consumption
7131 thousand barrels of condensates
The investment cost is about 400 million dollars.
Egyptian Natural Gas Co 33.3%
Agip International BV 33.3%
BP Global Investments Limited (BP) 33.3%
LNG exporting projects executed in Egypt are considered record breaking projects worldwide, as regards the period of implementation, the cost and technology transfer. These projects will enable Egypt to rank among the main LNG exporting countries worldwide.
In order to finance these investment projects the petroleum sector followed an economic model based on making benefit of the available funds in the local and international bank place, such that it does not impose any burden on the public treasury as follows:
· Providing the fund of the capital cost of these projects (up to 80% of the cost) through "Project Finance" system, where the economies of the project as well as its feasibility guarantee entirely repaying the financing burden.
· Providing the Petroleum sector's capital share through long –term and short-term loans which are obtained through international financing associations, Arab funds and local banks, such that the burdens of financing are repaid from the sector's return on capital.
· Participation of the national specialized companies in different activities related to implementing investment projects.
· The natural gas liquefaction project in Idku ,train-1 and train-2 ,is considered the ultimate application of the sector's new financing model
No doubt, Natural gas liquefaction projects reflect a deep vision towards the future where the gas exporting strategy is based on achieving the balance between exporting and the local consumption requirements; to obtain a return of foreign currency to achieve the development, and also to save a large percent of the strategic reserves for the future generations.