EGAS, Tecnicas Reunidas Sign MoU

Egyptian Natural Gas Company (EGAS) and Spanish company Tecnicas Reunidas on Thursday signed a MoU pertaining to methane recovery project at the Western Desert Gas Complex (WDGC), Egypt’s Petroleum Ministry said in a statement.

The MoU envisages preparation of a technical and economic feasibility study and the provision of finance offers for the second phase of the project.

The project aims to maximize the production of ethane/propane mixture, which forms the basis for the production of ethylene and polyethylene in the petrochemical industry, thus contributing to securing feedstock and raw material for new and existing petrochemical projects, the Ministry said.

The memorandum was signed by Karem Mahmoud, Chairman of EGAS and Ricardo Sanchez Galindo, commercial director of Tecnicas Reunidas.

Mahmoud said the methane recovery project is part of a series of projects currently being implemented at the Western Desert Gas Complex (WDGC) and the LPG recovery plant at El-Amereya. He added that the first phase of the project is currently being implemented with an investment of approximately $17 million and is planned to start operation by next June.