Dana Gas acquires stake in Bahrain company and lead role in Egypt gas
Posted: 02 October 2006
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Dana Gas, the Middle East's first regional private-sector natural gas company on Saturday signed an agreement in Bahrain providing it with a controlling stake in a Bahraini-registered company, to be named Danagaz (Bahrain).
 The agreement was signed by HE Shaikh Hamad bin Ebrahim Al Khalifa and Hamid Dhiya Jafar, Executive Chairman of Dana Gas. The Company will be owned 66% by Dana Gas and 34% by the Bahraini partners; and its first investment is to develop a project to build, own and operate the Gulf of Suez Gas Liquids Plant in Egypt .
"We welcome this partnership with Dana Gas who, with their regional private-sector approach and technical and financial capabilities, can add value to our first project in Egypt, as well as in jointly pursuing further business opportunities", said Shaikh Hamad.
The Gulf of Suez Gas Liquids Plant project involves the engineering, fabrication, installation and operation of a high-efficiency gas liquids extraction and manufacturing plant on the western shore of the Egyptian Gulf of Suez. The project will be executed by a joint venture company with Danagaz ( Bahrain ), and state-owned Egyptian Natural Gas Holding Company (EGAS) holding equal shares.
"This is an important strategic step for Dana Gas from several perspectives", said Rashid Saif Al-Jarwan, General Manager of Dana Gas. "Firstly, we join with highly reputable partners in Bahrain , where we plan to develop further projects in the natural gas business. "Secondly, it leads to our first investment in Egypt , a country with over 70 trillion cubic feet of natural gas reserves and growing, with a promising business environment for further investments in this important strategic sector.
"Last but not least, the Gulf of Suez Gas Liquids Plant enters Dana Gas into long-term joint-venture partnership with an important and esteemed organisation in the region's energy industry - the Egyptian Natural Gas Holding Company (EGAS)."
The plant will be capable of processing at least 150 million cubic feet per day of natural gas and will produce approximately 120,000 metric tonnes per year of propane and butane in liquid form.
The joint-venture company will also undertake the export and marketing of the liquid petroleum gas products as the Plant comes into operation. The consortium has signed an agreement for a 15-year supply of natural gas feedstock for the plant with the Egyptian General Petroleum Corporation (EGPC), with option to further extend after that period. The main agreements for the project are currently in place and the implementation phase is expected to be completed in 24 months. |
