Definitions

SEGAS LNG

SEGAS LNG

SEGAS LNG is a liquefied natural gas complex in Damietta, Egypt. It is located west of Port Said.

History

The LNG plant was ordered in 2000 and the construction works started in September 2001. The complex came on-stream in December 2004 and the first cargo was load on 20 January 2005. When SEGAS LNG became operational, it was the largest single train LNG plant in the world.

Technical features

The output capacity of the plant is 5 million tons of LNG per year. The initial capacity was designed to be 5.5 million tons of LNG per year. The complex includes the LNG liquefaction train, inlet gas reception area (metering and analysis), natural gas liquids removal and fractionation area, a docking jetty for tanker loading and transportation, LNG refrigerated storage and export facilities (tanks and booms), utilities and supporting infrastructure (power, water and roads), gas metering and treatment facilities (acid gas removal and dehydration), refrigerant condensate and LNG storage (two 150,000m³ PC LNG storage tanks). The total investment costs of the LNG complex were around US$1.3 billion.

The Damietta LNG complex was designed by KBR and constructed by KBR, JGC Corporation, M. W. Kellogg Limited and Técnicas Reunidas. Saipem constructed storage tanks while Dodsal Pte Ltd was the subcontractor responsible for the construction of the mechanical works of LNG train.

Gas supply

The plant is supplied by natural gas from the West Delta Deep Marine (WDDM) Concession Area about from the LNG complex. It is supplied by the Egyptian Natural Gas Company Holding (EGAS).

Export markets

Produced LNG is exported mainly to the Spanish market via a new receiving terminal at Sagunto. 3.2 million tons of LNG per year is taken by Unión Fenosa Gas. Rest of the LNG is sold by Egyptian Natural Gas Holding Company.

Operating company

The LNG complex is operated by SEGAS, which is controlled by Unión Fenosa Gas, a joint venture of Unión Fenosa and Eni. Unión Fenosa Gas owns 80% of SEGAS shares. Minor share holders are Egyptian Natural Gas Holding Company (EGAS - 10%) and Egyptian General Petroleum Corporation (EGPC – 10%).

Proposed second train

There are plans to build second LNG train. On 28 March 2005 Eni, BP, and EGAS signed a Memorandum of Understanding of construction of the second train in Damietta. On 19 June 2006 BP and its partners signed the framework agreement for the expansion of the capacity of the LNG plant to 10 million tonnes per year. It will be probably supplied from the Satis gas discovery in the offshore Nile Delta.

References

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