Egypt to establish first plant to transform gas into oil by products

"Feasibility studies by international petrochemical research centers to establish Egypt's first plant to transform natural gas into liquified oil by-products were discussed on the sidelines of the 17th international oil conference for the Arab-Euro Mediterranean basin countries held in Alexandria recently, "Minister of Petroleum Sameh Fahmy said.

The plant is expected to achieve a daily production of 90,000 barrels of oil by-products, including solar, naphtha, kerosene and butane gas, 100,000 barrels of water for agriculture as well as 300,000 kilowatts of electricity to be pumped into the national power grid.

The Minister added that a number of complexes are being installed to extract valuable oil derivatives including ethane, propane and butane gas with investments of $ 312 million.

Production will start in 2004. The first complex will be established in north of Port Said and the second in Damietta.

During the conference, experts said that Egypt has a great future in prospecting and drilling for oil and gas and in the petrochemical production industry.

They emphasized the importance of the new technology and the need to exchange information and expertise through research centres and international companies.

Finally, the conference urged for more cooperation between European and Arab countries and recommended that the basin countries cooperate in drilling, extraction, production, transportation, refining and distribution, besides pursuit of natural gas liquefaction projects to meet export objectives and maximize profits.