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Egypt to Start Operating Gas Processing Plant in the Western Desert by Mid-2025

August 8, 2024

The Egyptian Ministry of Petroleum and Mineral Resources intends to complete the construction of a natural gas processing plant in the Western Desert and begin trial operations to accommodate the targeted increase in Egyptian gas production by mid-2025.

The project’s investment cost will reach $600 million, and the “Meliha” processing plant, operated by Agiba Petroleum Company, will enhance the supply of natural gas to the national grid.

 In mid-July, Egypt’s Minister of Petroleum and Mineral Resources, Karim Badawi, stated before the parliamentary committee responsible for the government program that the ministry aims to expand gas and oil production by signing 145 active commitment agreements with 40 partners for oil and gas exploration and production in Egyptian territories.

The Egyptian company Petrojet is executing the project’s construction as the general contractor, with SLB (formerly Schlumberger) collaborating on certain engineering, design, and supply aspects.

The project is scheduled for completion in the first quarter of 2025, with trial operations following to ensure readiness to receive gas by mid-year.

 According to a statement from Egypt’s Ministry of Petroleum in March, Agiba Petroleum Company allocated approximately $500 million for the 2024–2025 fiscal year, aiming to increase its daily production to 30,000 barrels of crude oil and 119 million cubic feet of gas during this period.