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Enron Mail |
FYI---rob and I have been meeting with the Minister on this, and my
impression is that the rules are not nearly as far advanced as the article below indicates. We will be in Egypt again in the near future to talk again with the Minister ---------------------- Forwarded by Rick Bergsieker/ENRON_DEVELOPMENT on 09/23/2000 10:14 AM --------------------------- Daniel R Rogers 09/21/2000 02:22 PM To: Rick Bergsieker/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Clay Harris/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Wayne Perry/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Doug Arnell@ENRON_DEVELOPMENT, V V Rao@ECT cc: Nancy Corbet/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Ned E Crady/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT Subject: EGYPT LNG/Pipeline I wasn't sure whether you folks had seen this so I thought I'd pass it along. Dan EGYPT: Egypt agrees to reduce natural gas price. 09/18/2000 Reuters English News Service (C) Reuters Limited 2000. CAIRO, Sept 18 (Reuters) - Egypt's Oil Minister Sameh Fahmy said on Monday the ministry had agreed with international companies to reduce the price of natural gas produced locally. He told reporters after a cabinet meeting that approved the agreement that it would be submitted to parliament, which opens a new session on December 13 after general elections. Fahmy said the new gas pricing deal, which cuts the price Egypt pays to foreign companies for their share of gas produced in the country, would save the government $250 million a year. He gave no details of the pricing structure, but said it would take effect from July, 2000, apparently referring to the start of Egypt's fiscal year (July-June). The cabinet also approved plans to export natural gas and liquefied natural gas (LNG) to Turkey and Europe, he said. Information Minister Safwat el-Sherif said Egypt would earn an initial $265 million a year from exporting gas by pipeline and about $280 million a year from LNG exports. In July, Spanish electricity generator Union Fenosa signed a long-term gas contract with the state Egyptian General Petroleum Corporation to buy 40 billion therms of gas a year. Spain's third biggest power utility is to receive the gas by pipeline. It said it had also agreed to invest $1 billion to build a liquefaction plant in Egypt by 2004. In June BP-Amoco announced plans to develop an LNG plant to process and ship LNG to Mediterranean and other markets. BG International said in April it had agreed with EGPC and Italy's Edison International to build an LNG plant for export to unspecified buyers in the Mediterranean region. East Mediterranean Gas, a joint venture of EGPC, Israel's Merhav Group, said in May it had begun talks with the Israel Electric Corp for laying an underwater pipeline to supply Egyptian gas to Israel. It said it planned to build a 780-km (468-mile) pipeline able to carry up to 15 billion cubic metres of gas a year from Egypt to Turkey, with exits to Israel. Egypt puts its proven reserves of natural gas at 42.5 trillion cubic feet and total reserves at around 120 trillion.
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