Egyptian LNG Terminal

From Global Energy Monitor
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Egyptian LNG Terminal, also known as ELNG Terminal and Idku Terminal, is an operating LNG terminal in Beheira, Egypt.

Location

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Project Details

  • Operator: Egyptian LNG[1]
  • Owner: Egyptian LNG[1]
  • Parent:
    • T1: Shell 35.5%, Petronas 35.5%, EGPC 12%, EGAS 12%, TotalEnergies 5%[2] [1][3]
    • T2: Shell 38%, Petronas 35.5%, EGPC 12%, EGAS 12%, TotalEnergies 5%[1][3]
  • Location: Idku, Beheira, Egypt[4]
  • Coordinates: 31.3490, 30.31864 (exact)[4]
  • Cost: 2 billion USD[5]
  • Capacity: 7.2 mtpa[6] (3.6 mtpa per train)[3]
  • Status: Operating[3]
  • Type: Export[3]
  • Trains: 2[3]
  • Start Year: 2005

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Background

Egyptian LNG Terminal (ELNG Terminal) is an LNG terminal in Beheira, Egypt on the Mediterranean coast. The facility is also called Idku LNG. It is comprised of two production trains supplied by the Simian Sienna Gas Field and Sapphire Gas Field. The terminal was designed to allow for easy expansion of up to four more production trains.[6]

Egypt's domestic market had diverted natural gas feedstock from export plants. Operations at the ELNG terminal greatly decreased in 2014. Political upheaval caused power shortages and forced Egypt to save gas for is own use.[7] ELNG temporarily ceased exports in 2015, but was not formally decommissioned.[8]

In 2015 Egypt became a net LNG importer. The International Gas Union predicted new gas drilling in the Zohr gas field of the Mediterranean Sea, as well as Egypt's West Nile Delta, could restore Egypt's status as a net gas exporter by 2021.[8]

Egypt started exporting limited amounts of LNG from the Egyptian LNG terminal in September 2016 to keep equipment running. It planned to run the facility at full capacity for export in 2020 or 2021.[9]

According to the International Gas Union’s World LNG 2017 report, Egypt was the 18th largest LNG exporter by share between 2015 and 2016.[8]

As a result of record low LNG prices fueled by COVID-19, the terminal was shut in with export cargoes not expected to start up again until mid-July 2020.[10]

In February 2023, LNG Prime reported that Shell and Energean were studying the concept of building a carbon capture and storage (CCS) plant for the facility.[11]

In July 2023, however, the Egypt LNG Terminal halted production because of an increased domestic demand for gas in Egypt.[3] Production at the Damietta facility was also temporarily halted in May of that same year.[3] In October 2023, production at the Egypt LNG Terminal resumed,[3] but was again halted in May of 2024 due to another seasonal uptick in domestic demand during the summer months in Egypt.[12][13] Egypt has plans to import LNG shipments from July to October 2024 to keep up with the demand.[13]

Israel/Cyprus Gas Import

Forbes reported in November 2015 that if Egypt joined Cyrus and Israel in a venture to import gas to Egypt, the three countries would have enough infrastructure to form a regional Eastern Mediterranean gas hub.[14]

Bloomberg reported in 2016 that Israeli companies had been negotiating to build an undersea pipeline from Israel's Leviathan field to Shell's Egyptian LNG Terminal Idku. Israel’s reconciliation agreement with Turkey created the possibility that Israel could build the pipeline north to Turkey’s state-owned BOTAŞ Petroleum Pipeline Corporation, or build pipelines to both Egypt's LNG and Turkey. Leviathan development partners, Israeli's company Delek Group and U.S. partner Noble Energy, and Israel’s energy minister claimed there was enough gas to do both projects. On the other hand, a senior fellow at DC's Atlantic Council’s Global Energy Center said there was likely not enough gas for both projects.[15]

Leviathan's partners claimed the field held 620 billion cubic meters of gas. The Israel government claimed the estimate was 20 percent less.[15]

Bloomberg reported in August 2017 that Shell was considering buying Israeli gas from the Leviathan field and Cypriot gas from the Aphrodite field for the Egyptian LNG Terminal. Shell owns 35% of the Aphrodite field and was considering buying about 5 billion cubic meters of gas a year from the Leviathan field.[7] Egypt's underdeveloped Zohr field, discovered in 2015, is geographically close to Aphrodite and Leviathan. This would ideally allow the three fields to coordinate their development.[14]

Articles and resources

References

  1. 1.0 1.1 1.2 1.3 International Group of Liquefied Natural Gas Importers (May 24, 2022). "Annual Report 2022 Edition" (PDF). GIIGNL. Retrieved July 13, 2022.{{cite web}}: CS1 maint: url-status (link)
  2. The LNG Industry: Annual Report 2020, page 41, International Group of Liquefied Natural Gas Importers, accessed April 29, 2020
  3. 3.0 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 GIIGNL (2024). "GIIGNL Annual Report 2024" (PDF). GIIGNL. Retrieved June 27, 2024.{{cite web}}: CS1 maint: url-status (link)
  4. 4.0 4.1 "ELNG - Egyptian Liquefied Natural Gas Co · 88XF+87P، المنطقة الحرة، الخاصة, Edku, Beheira Governorate 5958012, Egypt". ELNG - Egyptian Liquefied Natural Gas Co · 88XF+87P، المنطقة الحرة، الخاصة, Edku, Beheira Governorate 5958012, Egypt. Retrieved 2024-06-27.
  5. "Egyptian LNG Project, Idku". NS Energy. Retrieved July 25, 2022.{{cite web}}: CS1 maint: url-status (link)
  6. 6.0 6.1 ELNG IDCO Terminal, A Barrel Full, accessed April 2017
  7. 7.0 7.1 Yaacov Benmeleh and Rakteem Katakey, "Shell to Mull Buying Israeli, Cyprus Gas for Egypt Plant," Bloomberg, August 20, 2017.
  8. 8.0 8.1 8.2 "2017 World LNG Report" International Gas Union, Accessed June 20, 2017.
  9. Salma El Wardany, "Egypt to Import LNG With an Eye on Self-Sufficiency in 2018," Bloomberg, February 6, 2017
  10. , "Economic slowdown impacts MENA LNG," LNG Industry, Jun. 9, 2020.
  11. LNG Prime Staff (2023-02-20). "Shell, Energean to work on CCS for Idku LNG plant in Egypt". LNG Prime. Retrieved 2023-08-04.
  12. Sakshi Jalan, Aly Blakeway, and Roudy Dirani (23 April 2024). "Egypt to halt all LNG exports from May to meet domestic needs". S&P Global. Retrieved June 28, 2024.{{cite web}}: CS1 maint: multiple names: authors list (link) CS1 maint: url-status (link)
  13. 13.0 13.1 Africa Energy Portal (03 May 2024). "Egypt to Cut Down LNG Exports in May". Africa Energy Portal. Retrieved June 28, 2024. {{cite web}}: Check date values in: |date= (help)CS1 maint: url-status (link)
  14. 14.0 14.1 Simone Tagliapietra and Georg Zachmann, "Egypt Holds The Key To The Eastern Mediterranean's Gas Future," Forbes, November 29, 2015
  15. 15.0 15.1 David Wainer and Yaacov, "Quicktake Q&A: Israel’s Geopolitical Quandary on Exporting Gas," Bloomberg, September 6, 2016.

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