Shell Egypt awards Bechtel FEED contract for Egyptian LNG terminal

Shell Egypt, EGAS, and Petronas have awarded a front-end engineering and design (FEED) contract to a Bechtel-led coalition that includes Enppi and Petrojet for the Egyptian LNG export terminal.

Under the contract, the coalition will study a proposed unified power system between the onshore gas processing plant of the West Delta Deep Marine (WDDM) gas fields off the coast of Egypt, and the Egyptian LNG export terminal (ELNG) in Idku, east of Alexandria.

The FEED for the Idku Energy Hub project will explore the benefits of a one power hub concept, integrating the electrical power systems at the WDDM and ELNG, as opposed to having two separate systems. It wants to increase the power saving and GHG abatement benefits of unifying the electrical power systems of the onshore plants.

The synergies will include optimization of the number of running gas turbine generators, modeling the most efficient operating mode for both plants, reducing GHG emissions, and economizing the fuel consumption in the entire hub.

This project is part of a broader program between the coalition and the Egyptian Ministry of Petroleum and Mineral Resources (MOP) aiming to decarbonize existing oil and gas facilities across the country.

“I am so proud that the oil and gas sector is contributing significantly to achieving top strategic goals: accelerating decarbonization and economizing power consumption,” said minister of petroleum and mineral resources Tarek El-Molla.

Khaled Kacem, vice president and country chair of Shell Egypt, added: “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 MOU between Shell and the MOP that was signed earlier this year.”

“This project is an excellent example of private and public sector partnership to support Egypt’s decarbonization strategy,” Paul Marsden, president of Bechtel Energy said.

Bechtel, Enppi, and Petrojet will execute the FEED on a fast-track basis aiming to complete the scope of work within 2022.