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Shell suspends El-Borollos production next month to link pipeline to treatment station - Daily News Egypt

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Shell suspends El-Borollos production next month to link pipeline to treatment station

South Alexandria Project to be linked to El-Borollos gas treatment station


Shell has agreed with the Egyptian Natural Gas Holding Company (EGAS) on suspending the daily production of 600m square feet of gas from El-Borollos fields for a week in December to link the pipeline of the South Alexandria Project to El-Borollos gas treatment station.

A source in the oil sector said that the implementation of the pipelines needed to link 650m cubic feet of gas daily from South Alexandria Project, affiliated to British Petroleum, have been completed, and they will be linked to El-Borollos treatment station during the suspension period in December.

He added that British Petroleum signed a contract with Shell on the treatment of 650m cubic feet of gas daily produced from South Alexandria Project through El-Borollos treatment station for $0.3 per one million thermal units.

The source added that the daily capacity of El-Borollos gas treatment station is about 1.1bn cubic feet, while now it is used in the treatment of 640m cubic feet daily.

The Ministry of Petroleum’s plan is to link the entire production of South Alexandria Project, which is about 1.25bn cubic feet daily and 17,000 barrels of condensates, to the national gas grid in the third quarter of 2019, with total investments of $11bn.

The plan also includes speeding up the date of beginning the production of South Alexandria Project in the third quarter of 2017, after it had been suspended since 2011 as a result of the circumstances the country went through.

The project includes developing five fields, starting with Taurus and Libra, through linking them to El-Borollos treatment station in the third quarter of 2017.

Additionally, both Giza and Fayoum fields will be linked to Rashid treatment station after modifying it to suit the kind of gas produced from these fields in the third quarter of 2019.

The plan of the Ministry of Petroleum also includes linking the production of Raven field to a new treatment station that is under construction in the fourth quarter of 2019.

The production of South Alexandria Project will start with 490m cubic feet daily and will increase gradually to 1.25bn cubic feet by the end of 2019. British Petroleum completed about 52% of the work in both fields of Taurus and Libra.

The proven reserves of South Alexandria Project fields are about 5tn cubic feet of gas and 55m barrels of condensates.

 

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