EGAS Halts Gas Supply to Idku Liquefaction Plant

The Egyptian Natural Gas Holding Company (EGAS) has stopped supplying gas to the Idku liquefaction plant operated by British Gas and GDF Suez, as a result of the increased use of gas by power stations, Daily News Egypt reported Monday.

An official from EGAS told the newspaper than volume of gas pumped from EGAS to the Ikdu liquefaction plant has not exceeded 100m cubic feet per day, a result of decline in country’s gas output.

While the Idku plant needs 1.13bn cubic feet of gas per day, the supply dropped to as low as 4m cubic feet on 20 August leading to stoppage of work.

The official added that the plant will be subject to international lawsuits and arbitration like its counterpart, Damietta LNG, particularly in light of the government’s refusal to allow companies to import gas from Israel to re-initiate work at factories, reported Daily News.

The Egyptian government has failed to negotiate with SEGAS and Union Fenosa on the Damietta LNG plant and was unable to persuade them to waive arbitration, which would require $6bn in compensation, the newspaper said.

As a result, these partners will not provide gas to Egypt until 2018. The contracted quantities in question stand at about 750m cubic feet of gas per day, according to the EGAS official.