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Egypt to complete gas project this year

15 April 2025

 

The project to develop a fourth production train at Egypt’s Western Desert gas complex in Amriya is now scheduled to come online before the end of this year after a series of delays, according to industry sources.

In February 2023, the project was on track to be completed before the start of 2024, but it has suffered delays since then related to a range of issues that include procurement problems.

One source said: “The issues have now been resolved and the project should come online this year.”

Installation of some final items is ongoing and some units are currently being commissioned, sources said.

Over recent years, procuring equipment and materials for many projects in Egypt has become increasingly challenging due to the country’s economic issues.

The main contracts for the project, worth a total of $295m, were awarded to Egypt-based Enppi and Petrojet in February 2020.

The state-controlled Egyptian Natural Gas Company (Gasco) is developing the project.

In September 2023, Egypt’s cabinet approved granting a “golden licence” to Gasco for the project, which will increase the capacity of the Western Desert gas complex via a fourth production line with a design capacity of 600 million cubic feet a day (cf/d).

The “golden licence” is awarded to projects identified by the Egyptian state as strategic and gives the project certain privileges. It is not widely understood exactly how the licence will benefit the project.

The Gasco project is expected to provide employment opportunities for some 2,500 workers.

It spans about 33 acres in Amriya’s Nahda Industrial Zone.

The project aims to increase the production of natural gas derivatives, meet the raw material needs of petrochemical factories, and ensure a steady supply of liquefied petroleum gas to support local market demands.

The fourth train, known as Train D, will boost the capacity of the Western Desert gas complex from 950 million cf/d to 1,550 million cf/d.

The scope of the project includes:

  • Installation of an evaporator
  • Installation of air-cooled condensers
  • Installation of a safety and security system
  • Excavation work
  • Installation of associated facilities

In June 2021, Gasco secured a $200m syndicated loan to expand the Western Desert gas complex in Amriya.

The lenders included Banque Misr, Banque du Caire, CIB, QNB, Al-Ahli, Arab African International Bank and Bank Audi.

MEED’s March 2025 special report on Egypt includes:

> COMMENT: Egypt battles structural issues
> GOVERNMENT: Egypt is in the eye of Trump’s Gaza storm
> ECONOMY: Egypt’s economy gets its mojo back
> OIL & GAS: Egypt gas project activity collapses amid energy crisis
> POWER & WATER: Egypt’s utility projects keep pace
> CONSTRUCTION: Coastal city scheme is a boon to Egypt construction
> DATABANK: Egypt faces complex economic reality

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Wil Crisp

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