Nile Valley Gas Company

active

With its partners Edison International SpA (Italy), the local Orascom Construction Industries (OCI)and Middle East Gas Association, British Gas International (Egypt) signed a 25-year franchise with the State Egyptian General Petroleum Company in 1998 to build an initial 500 km-gas pipeline from South of Cairo to Asyut in two phases worth $220 million investment. The consortium formed a new company called Nile Valley Gas Company (NVGC), which will develop the transmission and distribution network for industrial customers and initially 20,000 domestic homes in the Beni Suef area. The first phase, which has extended a pipeline from South of Kuimat to Bei Suef was completed in 1998. British Gas Plc holds 37.5% of NVGC through British Gas Netherlands BV. Edison International Spa, a subsidiary of Edison Spa, the Italian energy holding company of the Montedison Group, also holds 37.5%. Orascom for Investment and Development SAE holds 20% interest and the privately owned Egyptian Investment Company Middle East Gas Association has 5%. The franchise is the first of its kind in Egypt to offer private sector companies the role of providing gas to areas without a supply. None None