EG-GAS INVESTMENT

closed

The specific project objectives are to: (a) promote the efficient development and utilization of gas resources by increasing the delivery of natural gas; (b) substitute gas for higher value tradeable petroleum products to increase the export potential of the latter; (c) help improve the air quality in the Greater Cairo area by decreasing the output of carbon dioxide and sulphur oxides; and (d) continue institution building efforts to increase the commercialization of Petrogas. The project consists of the following components: (a) the Greater Cairo gas distribution component to finance the pipeline and related equipment for extending the existing gas distribution system to 235,000 additional households, 5,000 commercial and 22 industrial establishments in Cairo, and displacing LPG, gas oil and fuel oil; and (b) the Trans Gulf gas component to finance gas compressors, gas treatment facilities and the platform template required for the gathering of an extra 70 million cubic feet per day of gas for delivery to the national grid. In addition, three studies will be performed: a study to determine an investment plan for the refinery sector addressing the domestic fuel mix imbalance; a Gulf of Suez gas development study to determine an investment plan to address the increased use of shut-in and flared associated gas; and a cost of gas distribution study.