Egyptian LNG Terminal

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Egyptian LNG Terminal, also known as ELNG Terminal and Idku Terminal, is an LNG terminal in Beheira, Egypt.

Location

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Project Details

  • Operator: Egyptian LNG[1]
  • Owner: Egyptian LNG[1]
  • Parent:
    • T1: Shell 35.5%, Petronas 35.5%, EGPC 12%, EGAS 12%, TotalEnergies 5%[2] [1]
    • T2: Shell 38%, Petronas 35.5%, EGPC 12%, EGAS 12%, TotalEnergies 5%[1]
  • Location: Idku, Beheira, Egypt
  • Coordinates: 31.3, 30.3 (approximate)
  • Cost: 2 billion USD[3]
  • Capacity: 7.2 mtpa[4] (2.6 mtpa per train)
  • Status: Operating
  • Type: Export
  • Trains: 2
  • Start Year: 2005

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Background

Egyptian LNG Terminal is an LNG terminal in Beheira, Egypt on the Mediterranean coast. The facility is also called Idku LNG. It is comprised of two production trains supplied by the Simian Sienna Gas Field and Sapphire Gas Field. The terminal was designed to allow for easy expansion of up to four more production trains.[4]

Egypt's domestic market had diverted natural gas feedstock from export plants. Operations at the ELNG terminal greatly decreased in 2014. Political upheaval caused power shortages and forced Egypt to save gas for is own use.[5] ELNG ceased export in 2015. It has not been formally decommissioned.[6]

In 2015 Egypt became a net LNG importer. The International Gas Union predicts new gas drilling in the Zohr gas field of the Mediterranean Sea, as well as Egypt's West Nile Delta, may restore Egypt's status as a net gas exporter by 2021.[6]

Egypt started exporting limited amounts of LNG from the Egyptian LNG terminal in September 2016 to keep equipment running. It plans to run the facility at full capacity for export in 2020 or 2021.[7]

According to the International Gas Union’s World LNG 2017 report, Egypt was the 18th largest LNG exporter by share between 2015 and 2016.[6]

As a result of record low LNG prices fueled by COVID-19, the terminal was shut in with export cargoes not expected to start up again until mid-July 2020.[8]

In February 2023, LNG Prime reported that Shell and Energean were studying the concept of building a carbon capture and storage (CCS) plant for the facility.[9]

Israel/Cyprus Gas Import

Forbes reported in November 2015 that if Egypt joins Cyrus and Israel in a venture to import gas to Egypt, the three countries have enough infrastructure to form a regional Eastern Mediterranean gas hub.[10]

Bloomberg reported in 2016 that Israeli companies had been negotiating to build an undersea pipeline from Israel's Leviathan field to Shell's Egyptian LNG Terminal Idku. Israel’s reconciliation agreement with Turkey creates the possibility that Israel could build the pipeline north to Turkey’s state-owned BOTAŞ Petroleum Pipeline Corporation, or build pipelines to both Egypt's LNG and Turkey. Leviathan development partners, Israeli's company Delek Group and U.S. partner Noble Energy, and Israel’s energy minister claim there is enough gas to do both projects. On the other hand a senior fellow at DC's Atlantic Council’s Global Energy Center says there is likely not enough gas for both projects.[11]

Leviathan's partner's claim the field holds 620 billion cubic meters of gas. The Israel government claims the estimate is 20 percent less.[11]

Bloomberg reported in August 2017 that Shell is considering buying Israeli gas from the Leviathan field and Cyprus gas from the Aphrodite field for the Egyptian LNG. Shell owns 35% of the Aphrodite field and considering buying about 5 billion cubic meters of gas a year from the Leviathan field.[5] Egypt's underdeveloped Zohr field, discovered in 2015, is geographically close to Aphrodite and Leviathan. This allows the three fields to coordinate their development.[10]

Articles and resources

References

  1. 1.0 1.1 1.2 1.3 International Group of Liquefied Natural Gas Importers (May 24, 2022). "Annual Report 2022 Edition" (PDF). GIIGNL. Retrieved July 13, 2022.{{cite web}}: CS1 maint: url-status (link)
  2. The LNG Industry: Annual Report 2020, page 41, International Group of Liquefied Natural Gas Importers, accessed April 29, 2020
  3. "Egyptian LNG Project, Idku". NS Energy. Retrieved July 25, 2022.{{cite web}}: CS1 maint: url-status (link)
  4. 4.0 4.1 ELNG IDCO Terminal, A Barrel Full, accessed April 2017
  5. 5.0 5.1 Yaacov Benmeleh and Rakteem Katakey, "Shell to Mull Buying Israeli, Cyprus Gas for Egypt Plant," Bloomberg, August 20, 2017.
  6. 6.0 6.1 6.2 "2017 World LNG Report" International Gas Union, Accessed June 20, 2017.
  7. Salma El Wardany, "Egypt to Import LNG With an Eye on Self-Sufficiency in 2018," Bloomberg, February 6, 2017
  8. , "Economic slowdown impacts MENA LNG," LNG Industry, Jun. 9, 2020.
  9. LNG Prime Staff (2023-02-20). "Shell, Energean to work on CCS for Idku LNG plant in Egypt". LNG Prime. Retrieved 2023-08-04.
  10. 10.0 10.1 Simone Tagliapietra and Georg Zachmann, "Egypt Holds The Key To The Eastern Mediterranean's Gas Future," Forbes, November 29, 2015
  11. 11.0 11.1 David Wainer and Yaacov, "Quicktake Q&A: Israel’s Geopolitical Quandary on Exporting Gas," Bloomberg, September 6, 2016.

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External resources

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