Liquefied natural gas (LNG) joint venture Egyptian LNG has awarded a feasibility study contract to the Bechtel-led Coalition for Decarbonization to assess the implementation of a zero-flaring system at its export terminal (ELNG) in Idku, east of Alexandria.
The coalition, which includes Bechtel, Enppi, Petrojet, Baker Hughes, GE Digital, HSBC and NBE, signed the contract during the Decarbonization Day events at COP27 in Sharm El Sheikh, Egypt.
The feasibility study will assess options for total routine flaring recovery through modifications to the existing flare and compression systems at the ELNG facility, reducing methane emissions from this facility.
It will be executed on a fast-track basis aiming to move into the front-end engineering design ( FEED ) phase by early 2023.
As disclosed, the project fully supports the Methane Global Pledge signed by Abdel Fattah Al Sisi, President of Egypt, in June 2022. LNG will play a key role in the supply of reliable, responsible, and sustainable energy to Europe following the tri-lateral agreement signed between Egypt, the European Union, and Israel earlier this year.
The project is also a part of a wider program between the coalition and the Egyptian Ministry of Petroleum and Mineral Resources aiming to decarbonise existing oil and gas facilities across the country and deliver on Egypt’s climate change strategy.
The Coalition for Decarbonization was formed earlier this year between Bechtel, Enppi, Petrojet, Baker Hughes, GE Digital, HSBC and National Bank of Egypt, under the auspices of Minister Tarek El Molla.
“This initiative is an important part of ELNG’s continuing efforts to deliver operational improvements for our two LNG trains”, said ELNG’s CEO Mohamed Elbahnasy . “Flare reduction and recovery will reduce our greenhouse gas emissions and optimise fuel consumption and running hours of our rotating equipment, to enhance production and reduce operating costs.”
Khaled Kacem , VP and Country Chair of Shell Egypt, added that the study is also a significant step towards full implementation of the decarbonisation memorandum of understanding (MoU) between Shell and the Ministry that was signed earlier this year.
“This project is an excellent example of private and public sector partnership to support Egypt’s decarbonisation strategy that will strengthen energy security in the region” , Paul Marsden , President of Bechtel Energy, said.