Egyptian LNG has awarded a feasibility study contract to the Bechtel-led Coalition for Decarbonization that includes Enppi, Petrojet, Baker Hughes, GE Digital, HSBC and NBE. The study will assess implementation of a zero-flaring system at the Egyptian LNG export terminal (ELNG) in Idku, east of Alexandria. H.E. Tarek El-Molla, Egyptian Minister of Petroleum and Mineral Resources, hosted the signing ceremony during the Decarbonization Day events at COP 27 in Sharm El Sheikh, Egypt.
The feasibility study will assess options for total routine flaring recovery through modifications to the existing flare and compression systems at the ELNG facility, reducing methane emissions from this strategic regional facility. The project fully supports the Methane Global Pledge signed by H.E. Abdel Fattah Al Sisi, President of Egypt, in June 2022. LNG will play a key role in the supply of reliable, responsible, and sustainable energy to Europe following the tri-lateral agreement signed between Egypt, the European Union, and Israel earlier this year.
The project is part of a wider program between the Coalition and the Egyptian Ministry of Petroleum and Mineral Resources aiming to decarbonize existing oil and gas facilities across the country and deliver on Egypt’s climate change strategy. The Coalition for Decarbonization was formed earlier this year between Bechtel, Enppi, Petrojet, Baker Hughes, GE Digital, HSBC and National Bank of Egypt, under the auspices of H.E. Minister Tarek El Molla.
“I am so proud that Egypt’s oil and gas sector is contributing significantly to achieving top strategic goals and priorities: accelerating decarbonization and applying state-of-the-art technologies and solutions in this domain” His Excellency Minister of Petroleum and Mineral Resources Tarek El-Molla said. “I am pleased that the sector is collaborating with our partners to take such initiatives and promote these priorities.”
“This initiative is an important part of ELNG’s continuing efforts to deliver operational improvements for our two LNG trains,’’ said ELNG’s CEO, Eng. Mohamed Elbahnasy. Flare reduction and recovery will reduce our greenhouse gas emissions and optimize fuel consumption and running hours of our rotating equipment, to enhance production and reduce operating costs.’”
“This project is a demonstration of our commitment to powering progress by providing more and cleaner energy,” Eng. Khaled Kacem, vice president and country chair of Shell Egypt, said. “As partners in Egypt’s journey to become a regional energy hub, we are also mobilizing our efforts and expertise to support the country’s energy efficiency ambitions. This is also a significant step towards full implementation of the decarbonization Memorandum of Understanding between Shell and the Ministry that was signed earlier this year.”
“This project is an excellent example of private and public sector partnership to support Egypt’s decarbonization strategy that will strengthen energy security in the region,” Paul Marsden, President of Bechtel Energy said. “We bring world-class expertise in execution, technology and financing necessary to enable Egypt to reach its decarbonization goals. We are looking forward to continuing our partnership with the people of Egypt.”
“At Baker Hughes we believe collaboration and partnerships are necessary to achieving a net-zero emissions future. This project is another step to show our continued commitment to supporting Egypt’s decarbonization journey and climate change strategy,” said Lorenzo Simonelli, Chairman and CEO of Baker Hughes. “As an energy technology company, we are keen on providing technology-based solutions that can help drive the security and sustainability of energy in Egypt and beyond, and the Coalition for Decarbonization is essential to help accelerate the deployment of such technologies effectively.”
GE Digital CEO Scott Reese said: “As the world gathers in Egypt for COP27, solutions that can help to decarbonize the industry will be at the forefront of the conversation. Software plays a key role and is essential to accelerating the energy transition. Along with our partners, it’s our hope that the findings of this feasibility study will have far-reaching impact for the LNG industry in Egypt and beyond.”
“Energy transition is a journey that requires a clear vision with an efficient strategic tool to achieve its goals, the vision, and sustainable energy efficiency strategy that has been set by the Egyptian Ministry of Petroleum and Mineral Resources in full compliance with Egypt’s vision reflected in hosting the COP27 at Sharm El Sheikh.” Eng. Mohamed Abdelaziz, Enppi Chairman said. “Enppi with its leadership in the engineering field is committed to efficiently contribute in the implementation of this strategy, and is proud to continue the successful coalition we started with the top-notch affiliates in the energy sector. I’m looking forward for more of our fruitful cooperation and teamwork spirit, that makes me confident that we can together achieve with full commitment to decarbonize our sector.”
“Once again our coalition proves itself as an effective vehicle supporting the Egyptian Ministry of Petroleum and Mineral Resources to decarbonize existing oil and gas facilities across the country.” Eng. Waleed Lotfy, Chairman and Managing Director of Petrojet, said. “As we are featuring now an exceptionally successful round of COP27 in Egypt’s Sharm El Sheikh, I am looking forward with great enthusiasm for the coalition to embark onto more challenges.”
The Feasibility Study will be executed on a fast-track basis aiming to move into the Front-End Engineering Design (FEED) phase by early 2023.
The project is a testimony to the operational excellence of the ELNG plant. Reducing greenhouse gas emissions and optimizing fuel consumption and running hours of the rotating equipment will enhance production and reduce operating cost.