Dana Gas Achieves Added Value from NGL Extraction Plant in Egypt
Average flow rate of 75 mmscfd in first three months
– Additional revenue from new plant was US$ 8 million
– Revenue expected to double in line with planned growth in gas flow rate
Dana Gas PJSC, the Middle East’s largest private sector natural gas company,is pleased to provide an operational update on its Egyptian Bahrain Gas Derivatives Company “EBGDCo” Natural Gas Liquids (NGL) extraction plant at Ras Shukheir, Egypt.
The plant began operating commercially on 1 October 2012. In its first 3 months, the plant has processed a combined 12,340 metric tonnes of Propane (10,500) and Butane (1,840). The average gas flow-rate for the quarter was 75 million standard cubic feet per day (mmscfd) with recovery rates of 98.9 per cent and 99.9 per cent respectively.
The NGLs, which Dana Gas extracts from the main gas flow, provide an additional revenue stream. Total additional revenue from NGL sales to date is US$ 7.7 million, of which Dana Gas has used US$2.8 million to repay the first instalment of the project’s development financing. NGLs extracted at Ras Shukheir are exported to international customers.
Rashid Al Jarwan, Executive Director and Acting CEO of Dana Gas, said: “We are pleased with the results to date and are looking ahead to 2013 as the project shifts towards a more fully operational plant and our flow-rate increases from nearby gas fields.
“This project also provides strong validation of our strategy of continued focus and work on our Egyptian assets. We expect to continue to execute on this strategic model,where our long history, experience and deep local area expertise will provide us with an advantage as we grow our asset base and commercial reserves.”
EBGDCo has completed all outstanding project items related to the plant other than the finalisation of the design and testing programmes on the gas flow-rate which is being conducted by Exterran, a global market leader in full service natural gas operations. Once testing is complete and the plant is fully operational, EGBDCo anticipates extraction of 120,000 tonnes per annum of propane and butane from a gas stream of 150 mmscfd. The feed gas rate is expected to increase gradually once gas is received from gas fields in and around Ras Shukheir area.
The EBGDCo is a Natural Gas Liquid (NGL) extraction plant based in Ras Shukheir, Egypt.
Its main activities are gas processing and marketing of liquid propane and butane to local and international markets. The total cost of the project was AED 460 million, which was partly funded through AED 318 million of project finance and AED 105 million of equity, with the remaining to be funded through internal revenue. Dana Gas has contributed AED 28 million as its share of equity.
Dana Gas has 26.4% interest in EBGDCo. The interest is held through Dana Gas’ 66% ownership of Danagaz Bahrain. Other shareholders include Egyptian Natural Gas Holding Company (EGAS) with 40% shareholding and Arab Petroleum Investments Corporation (APICORP), a pan-Arab financial institution based in Saudi Arabia, with 20%.
Dana Gas has recently made two new onshore gas discoveries in the Nile Delta Basin of Egypt. Initial estimates indicate that together the two discoveries, known as Alyam-1 and Balsam-1, should increase the company’s commercial reserves by between 17 (proved) and 95 (proved & probable) million barrels of oil equivalent (MMBOE).
Dana Gas has a successful track record of gas discoveries in Egypt stretching back to the date the concession areas were awarded in June 2005. With investments exceeding $1.68 billion Dana Gas has become the 6th highest gas producer in Egypt, a country whose gas reserves have doubled in the past 5 years to over 70 trillion cubic feet, and which is among the world’s top ten exporters of LNG. The Company is firmly committed to pursuing long-term partnerships with Egypt’s national companies and other energy companies from the region and internationally.
ISSUERS OF NEWS RELEASES AND NOT OILANDGASPRESS.COM ARE SOLELY RESPONSIBLE FOR THE ACCURACY OF THE CONTENT
Public relations, press release distribution service, investor relations, SEC filing, regulatory news
www.oilandgaspress.com – The ‘one stop shop’ for global Oil and gas press releases!!!