Page 8 - AfrElec Week 08 2023

AfrElec GAS-FIRED GENERATION AfrElec

Bechtel, partners to establish unified

power system for WDDM, ELNG in Egypt

EGYPT BECHTEL (US) and two of its Egyptian partners than two separate networks.
in the Coalition for Decarbonisation have signed The projected increases in efficiency will stem
an agreement with Shell (UK) on the establish- from optimising the number of gas-turbine gen-
ment of a unified electrical power system for erators in operation at any given time, and this
the West Delta Deep Marine (WDDM) natu- in turn will help bring fuel consumption down
ral gas-processing plant and the Egyptian LNG and thereby reduce greenhouse gas (GHG)
(ELNG) plant in Idku. emissions.
According to press reports, the parties final- “By unifying the power system of the two
ised the deal on February 13, on the sidelines facilities, that will eliminate the gas turbines by
of the EGYPS 2023 exhibition in Cairo. The a generator, which will accordingly eliminate
agreement was reportedly signed by Karim emissions. So we are just reducing emissions for
El-Dessouky, Bechtel’s country manager for the Idku hub,” El-Dessouky said to the English
Egypt; Khaled Kacem, the vice president edition of Amwal Al Ghad.
and country chair of Shell Egypt; Mohamed Bechtel and its partners did not reveal the
Abdelaziz, the chairman of Enppi; and Waleed value of the contract. They did indicate, though,
West Delta Deep Marine Lotfy, the chairman and managing director of that the Idku Energy Hub agreement built on the
natural gas processing plant Petrojet. work that the Coalition for Decarbonisation had
The document provides for Bechtel to team already carried out on the project.
up with two other members of the coalition – Last November, during the COP27 confer-
namely, Enppi and Petrojet, both of which are ence in Sharm El Sheikh, Egyptian Natural Gas
state-controlled Egyptian oilfield service pro- Holding Co. (EGAS), Shell Egypt and Malaysia’s
viders (OSPs) – to construct the unified power Petronas awarded the coalition a contract for
system, which will be known as the Idku Energy front-end engineering and design (FEED) ser-
Hub. This hub will be able to supply power to vices related to the hub. That contract also called
both WDDM, which processes gas from the off- for studying plans to introduce a zero-flaring
shore Burullus fields, and ELNG more efficiently system at the ELNG plant.™

Gas project for Kinetiko, Gruner Energy

SOUTH AFRICA KINETIKO Energy, an Australian gas explorer on the continent of Africa,” commented Kinetiko
and developer, has signed a letter of intent (LOI) chief executive Nick de Blocq, “is a step change
to conclude a gas development and supply agree- in our approach to eventual commercial produc-
ment for a project in South Africa with local tion. We are targeting the southernmost areas of
energy company Gruner Energy Proprietary our Block ER271 for this project due to deeper
Limited. terminal depths of those wells and the expected
ASX-listed Kinetiko said in a release on Thurs- concurrent increase in pressures and flow rates.”
day (February 16) that under the non-binding Kinetiko is focused on advanced shallow
LOI, it intends to co-fund the development of conventional gas and coal bed methane in South
a proof-of-concept gas production trial with Africa. It has a 4.9 trillion cubic feet of contingent
Gruner, which, if successful, can be scaled. The resources in northcentral parts of the continent’s
agreement also provides for Gruner to buy natural most-industrialised nation.
gas produced for the gas development and supply Gruner develops, builds, owns and operates
agreement. sustainable energy assets in emerging African
Kinetiko considers the pact material as it markets. It says on its website that it has projects
demonstrates the nature of commercial relation- in South Africa, Nigeria and Sudan.
ships that the company is negotiating, which is “The parties have executed the LOI with
integral to its business model of establishing inter- the purpose of ultimately negotiating and con-
est in local joint venture partners to co-develop cluding within 6 months a formal, binding gas
and co-fund gas fields in Africa. The relationships, development and supply agreement,” Kinetiko
Kinetiko added, have the potential of accelerating said, whereby the company agrees to explore,
the exploration vision with funding support. drill and extract natural gas within South Africa
“The co-signing of an LOI with an interna- and Gruner intends to assist in the development
tional partner in the mid- and downstream energy and production of natural gas and purchase such
sector, especially one with substantial experience natural gas.™

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