Egyptian consortium to build $40M US shale gas pipeline
Updated 8/5/2024 8:23:00 AM
Arab Finance: A consortium of state-owned companies is planning to construct a $40 million pipeline to transport imported US shale gas from Alexandria’s Dekheila Port to Sidi Kerir Petrochemicals (Sidpec) and the Egyptian Ethylene and Derivatives Company (Ethydco), a government official told Al Arabiya Business.
The consortium, comprising the Egyptian Petrochemicals Holding Company (ECHEM), Sidpec, Ethydco, the Egyptian Natural Gas Company (Gasco), and Gama Construction, is also seeking to set up a regasification unit at Dekheila Port.
Gasco will be in charge of building the 40-kilometer pipeline, with construction expected to start in January 2025 and last for two years, the source pointed out.
He added that Gasco will finance the project in exchange for a transportation fee of around $20 per ton, along with the right to fully manage and maintain the pipeline.
Sidpec, Ethydco, and Gama Construction will each hold a 25% stake in the project, while ECHEM and GASCO will own 15% and 10%, respectively.
On August 1st, Egypt signed a shareholders agreement to establish the Alexandria Supply Chain Company, which will set up a permanent marine facility at Dekheila Port.
Related News
