LNG production

5.50 million tpy

The Damietta project in Egypt is a 1-train LNG development operated by SEGAS. The terminal is situated on the Mediterranean Coast 60 km west of Port Said. Construction of the facility began in September 2001. The complex came on-stream during the final quarter of 2004 and exports LNG to the Spanish market via a receiving terminal at Sagunto in Spain. The complex will initially produce 5.5 mtpa (7.5 bcm per year) of LNG by air-cooled refrigeration and fractionation. Estimated investment for the construction of the original facility was US$1.3 billion.
The operating company, SEGAS, is controlled by Union Fenosa Gas in conjunction with ENI of Italy (80%) and two state-owned Egyptian companies – Egyptian Natural Gas Holding Company (EGAS – 10%) and Egyptian General Petroleum Corporation (EGPC – 10%).Union Fenosa Gas is owned in a 50/50 partnership by Union Fenosa of Spain and Eni of Italy.
In 2005, not long after the first LNG train opened, SEGAS began considering plans for a second train with a 5.55 million t/yr capacity at the Damietta complex – after securing a joint off-take and feedstock agreement for Train 1 with Union Fenosa. In June 2006, Eni signed a new exploration agreement with Egypt for the El-Bougaz block in the Mediterranean and also outlined an agreement for the expansion of the Damietta LNG plant. 
In June 2007 the LNG expansion had been delayed because of complications over securing committed gas supplies. The final investment decision for the new train was expected to be taken in 2008. The second train will have a capacity of 7.6 bcm of gas per year for 20 years, which will just about double the capacity of the current plant. The expansion will be undertaken by a partnership formed by Eni, Union Fenosa, SEGAS (Spanish Egyptian Gas Co.), BP, Egas and Egyptian General Petroleum Corp.
The liquefaction and export capacity of the facility has already been sold for the next 25 years. EGAS signed a tolling agreement with SEGAS in June 2003. Under this agreement, EGAS will guarantee to sell the remaining 2.3 mtpa of spare capacity not accounted for by the principal off-taker, Union Fenosa. Union Fenosa, the main investor in SEGAS, has already guaranteed to sell 3.2 mtpa for the next 25 years.
EGAS has secured a five-year agreement with BG Group to supply gas to the Damietta site from the Scarab Saffron Fields in the West Delta Deep Marine (WDDM) concession offshore of the Nile Delta. The five-year contract was arranged between BG Group and EGAS, EGPC and Petronas. Under the terms of the agreement, BG Group will supply 225 millin cubic feet per day for the first four years and then 150 million cubic feet per day in the final year. In addition, BP Egypt has signed an agreement with EGPC and EGAS to supply up to 310 million cubic feet per day of natural gas to the plant from 2008.
Operators:
SEGAS 
Contractors:
Halliburton KBR joint venture, Damietta LNG Construction Llc. (DLC): FEED contract (September 2000)