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Egypt gas project impacted by delays to refinery project

29 July 2025

 

An Egyptian Natural Gas Company (Gasco) expansion project named the Egas Energy Efficiency Project is expected to be impacted by delays related to issues with the Assiut oil refinery upgrade project, according to sources.

The project focuses on upgrading the Dahshour compression station and includes the installation of new compressor trains. It is estimated to be worth about $1bn and is made up of four separate packages.

The package known as Lot 1 is worth $300m and is currently scheduled to come online either later this year or early next year.

One source said: “The project has made good progress and theoretically should be able to come online this year, but problems related to issues at the Assiut oil refinery project are causing complications that could delay this coming online.”

The scope of the Lot 1 package includes:

  • Construction of a fifth gas turbine-driven compressor train with a capacity of 326 million standard cubic feet a day (cf/d)
  • Construction of a sixth gas turbine-driven compressor train with a capacity of 163 million standard cf/d
  • Installation of an organic rankine cycle system
  • Installation of a power plant with a capacity of 12MW
  • Installation of generators
  • Construction of associated facilities

A separate Gasco project to develop a fourth production train at Egypt’s Western Desert gas complex in Amriya is now scheduled to come online next year, amid concerns about whether the facility will have access to the required volumes of natural gas.

Egypt is struggling to meet domestic demand for natural gas, and earlier this year, it had to halt production at several industrial facilities due to gas shortages.

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Wil Crisp

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