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M a r k e t N e w s
BG Explores Options for Idku Feedstock
Posted on : Monday, 27th October 2014
BG and BP are in talks that could lead to the kick-start of production at the feedstock starved Idku LNG plant operated by BG. The talks between the two British firms revolve around linking their respective gas developments offshore Egypt’s Mediterranean coast. Egypt’s state-run firm in charge of natural gas is also reportedly involved in the talks with BG and BP.
BG is looking at connecting its infrastructure at the WDDM gas field to the nearby North Alexandria license which is operated by BP. The production from the two fields would then be channeled to the Idku plant. Under the plan, BP would route around 350 Mmcf/d from two undeveloped fields, the Libra and the Taurus, into BG’s WDDM offshore pipeline network sending it to the Idku plant.
BG recently upgraded its subsea pipeline as part of a $1.5 billion investment in the West Delta Deep Marine field, allowing it to “manage the production from additional wells simultaneously and provide the capacity for future potential developments,” according to a company statement. Production at BP’s massive offshore Mediterranean finds was due to start at the end of 2014, and expected to add some 1 Bcf per day to total output. Delays mean exports are now not expected before 2016.
The potential collaboration with BP is not the only iron in the fire for BG when it comes to getting the LNG plant back up and running but there are also talks and a preliminary agreement signed with the participants in Israel’s gas field the Leviathan. Under this potential deal the Leviathan would supply 7 Bcm annually to the plant over a 15-year period.
Source : petroleum africa
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