SEGAS LNG
Encyclopedia
SEGAS LNG is a liquefied natural gas
Liquefied natural gas
Liquefied natural gas or LNG is natural gas that has been converted temporarily to liquid form for ease of storage or transport....

 complex in Damietta
Damietta
Damietta , also known as Damiata, or Domyat, is a port and the capital of the Damietta Governorate in Egypt. It is located at the intersection between the Mediterranean Sea and the Nile, about north of Cairo.-History:...

, Egypt
Egypt
Egypt , officially the Arab Republic of Egypt, Arabic: , is a country mainly in North Africa, with the Sinai Peninsula forming a land bridge in Southwest Asia. Egypt is thus a transcontinental country, and a major power in Africa, the Mediterranean Basin, the Middle East and the Muslim world...

. It is located 60 kilometres (37 mi) west of Port Said
Port Said
Port Said is a city that lies in north east Egypt extending about 30 km along the coast of the Mediterranean Sea, north of the Suez Canal, with an approximate population of 603,787...

. The name SEGAS comes from the Spanish Egyptian Gas Company.

History

The LNG plant was ordered in 2000 and the construction works started in September 2001. The complex came on-stream in December 2004 and the first cargo was load on 20 January 2005. When SEGAS LNG became operational, it was the largest single train LNG plant in the world.

On 28 March 2005. Eni
Eni
Eni S.p.A. is an Italian multinational oil and gas company, present in 70 countries, and currently Italy's largest industrial company with a market capitalization of 87.7 billion euros , as of July 24, 2008...

, BP
BP
BP p.l.c. is a global oil and gas company headquartered in London, United Kingdom. It is the third-largest energy company and fourth-largest company in the world measured by revenues and one of the six oil and gas "supermajors"...

, and EGAS signed a memorandum of understanding of construction of the second train. On 19 June 2006, partners signed the framework agreement for the expansion of the capacity of the LNG plant to 10 million tonnes per year. It was planned to be supplied from the Satis gas discovery in the offshore Nile Delta. However, the plan was postponed due limited gas reserves and increased domestic demand in Egypt.

Technical features

The output capacity of the plant is 5 million tons
Tonne
The tonne, known as the metric ton in the US , often put pleonastically as "metric tonne" to avoid confusion with ton, is a metric system unit of mass equal to 1000 kilograms. The tonne is not an International System of Units unit, but is accepted for use with the SI...

 of LNG per year. The initial capacity was designed to be 5.5 million tons of LNG per year. The complex includes the LNG liquefaction train
LNG train
An LNG train is the term used to describe the liquefaction and purification facilities in a liquefied natural gas plant.In order to make it practical and commercially viable to transport natural gas from one country to another, its volume has to be greatly reduced...

, inlet gas reception area (metering and analysis), natural gas liquids removal and fractionation area, a docking jetty for tanker loading and transportation, LNG refrigerated storage and export facilities (tanks and booms), utilities and supporting infrastructure (power, water and roads), gas metering and treatment facilities (acid gas removal and dehydration), refrigerant condensate and LNG storage (two 150,000 m³ PC LNG storage tanks). The total investment costs of the LNG complex were around US$1.3 billion.

The Damietta LNG complex was designed by KBR and constructed by KBR, JGC Corporation
JGC Corporation
JGC Corporation is a global engineering company headquartered in Yokohama, Japan. It is listed at the Tokyo Stock Exchange. The company was founded on 25 October 1928. In 1976, it changed its original name from Japan Gasoline Co. to JGC Corporation...

, M. W. Kellogg Limited
M. W. Kellogg Limited
M.W. Kellogg Limited ' was a British full service contractor primarily serving the hydrocarbon market with the capability to execute worldscale international projects from conceptual feasibility studies through fixed price turnkey mega-projects....

 and Técnicas Reunidas. Saipem
Saipem
Saipem S.p.A. is an Italian oil and gas industry contractor. It is a subsidiary of Italian energy company Eni, which owns approximately 43% of Saipem's shares. Saipem has contracted for designing and constructing several pipelines, including Blue Stream, Greenstream, Nord Stream and South...

 constructed storage tanks while Dodsal Pte Ltd was the subcontractor responsible for the construction of the mechanical works of LNG train.

Gas supply

The plant is supplied by natural gas from the West Delta Deep Marine (WDDM) Concession Area about 140 kilometres (87 mi) from the LNG complex. It is supplied by the Egyptian Natural Gas Company Holding (EGAS).

Export markets

Produced LNG is exported mainly to the Spanish market via a new receiving terminal at Sagunto
Sagunto
Sagunto or Sagunt is an ancient city in Eastern Spain, in the modern fertile comarca of Camp de Morvedre in the province of Valencia. It is located in a hilly site, c. 30 km north of Valencia, close to the Costa del Azahar on the Mediterranean Sea...

. 3.2 million tons of LNG per year is taken by Unión Fenosa Gas. Rest of the LNG is sold by Egyptian Natural Gas Holding Company.

Operating company

The LNG complex is operated by SEGAS, which is controlled by Unión Fenosa Gas, a joint venture of Unión Fenosa
Unión Fenosa
Unión Fenosa, S.A., is a large Spanish company dedicated to the production and distribution to end users of gas and electricity. It has installed capacity of 11,120 megawatts of power and 8.9 million customers. The headquarters are in Madrid and the chairman is Pedro López Jiménez...

 and Eni
Eni
Eni S.p.A. is an Italian multinational oil and gas company, present in 70 countries, and currently Italy's largest industrial company with a market capitalization of 87.7 billion euros , as of July 24, 2008...

. Unión Fenosa Gas owns 80% of SEGAS shares. Minor share holders are the Egyptian Natural Gas Holding Company (EGAS - 10%) and the Egyptian General Petroleum Corporation
Egyptian General Petroleum Corporation
The Egyptian General Petroleum Corporation is a national oil company of Egypt. It owns 70% of shares in the Egyptian Natural Gas Company, as well as a 75% stake in the petroleum-industry support airline Petroleum Air Services .It own a stake in the East Mediterranean Gas Company....

(EGPC – 10%).
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