Sunday, Oct 01, 2006
DUBAI (Zawya Dow Jones)--Sharjah-based Dana Gas has joined with Bahraini investors to invest in a project to build, own and operate a liquid petroleum gas plant in Egypt, the company said Sunday.
Dana Gas signed an agreement Saturday to form a Bahraini-registered company, to be named Danagaz (Bahrain), whose first investment will be to develop the Gulf of Suez Gas Liquids Plant.
The project will be executed by a joint venture company with Danagaz and state-owned Egyptian Natural Gas Holding Company holding equal shares.
Danagaz will be owned 66% by Dana Gas and 34% by the Bahrani partners, represented by Sheikh Hamad bin Ebrahim Al Khalifa.
The Egypt 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 plant, expected to be completed in 24 months, 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 LPG products.
The consortium has signed an agreement for a 15-year supply of natural gas feedstock for the plant with the Egyptian General Petroleum Corp., with an option to further extend after that period.
Rashid Saif Al-Jarwan, general manager of Dana Gas, said his company hoped to develop further gas projects in Bahrain.
-By Ayesha Daya, Dow Jones Newswires; +971 4 2279520; ayesha.daya@dowjones.com
(MORE TO FOLLOW) Dow Jones Newswires
10-01-06 0644ET
Copyright Zawya Dow Jones Newswires 2006
