An economic report: British Gas signs contract for 3.6 millions tons of Egyptian gas

The British gas Group BG for energy on Wednesday announced it finalized an agreement provided for buying 3.6 million tons of liquid natural gas per year of Egyptian liquid natural gas.

According to items of the agreement which allow the BG to increase its activities between the two sides of the Atlantic, BG Group in a first phase will transport the total production of the second shift of the liquid Egyptian gas to Lake Charles port in Louisiana, the USA.

In a statement, the group said that part of the production will be transported in a following phase to Prendisi port in Italy after it will be equipped.

In 2002, the Egyptian company finalized an agreement with the France de Gas company for buying 3.6 million tons of liquid gas per year, which represents the total production of the first shift of the Egyptian company as from the third quarter of 2005 and for 20 years.

However, BG Group is one of the main shareholders in the Egyptian liquid natural gas for which a factory to make gas liquid is under construction in Adko, 50 Km to the east of Alexandria.

However, the Egyptian liquid gas company is the second company for making congerting natural gas into liquid form in Egypt following the Spanish Union Venicia, for which a factory is being built in Dumyat to the north and production in this factory to start in 2004.

Worthy mentioning that the liquid gas is a natural gas which is made liquid through the technique of cooling in order to reduce its natural volume so as to facilitate its transport and storage.