British - Egyptian company to connect natural gas lines to southern Egypt

Britain and Egypt agreed to establish a joint-stock company named the Nile Valley Gas Company to implement an exclusive project to deliver natural gas to upper Egypt with investments that reach 1.5 billion pounds.

Hamdi El-Banbi, the Egyptian minister of petroleum, said that Egyptian Prime Minister Kamal El-Ganzouri later received the head of the British company British Gas, which is currently working in Egypt in areas for drilling and exploring for petroleum and gas in North Sinai, West Delta, and the North Red Sea with investments that reach $386 million.

The Upper Egypt agreement calls for the Nile Valley Gas Company -- in which BG leads a group of participants including Edison International, Orascom and Middle East Gas Association -- to expand delivery systems to the region and develop the market there.

The development project, to be carried out in phases, the first two of which will have a total investment of $220 million. The first phase includes expansion of delivery systems from south of Kuriamat to Beni Suef, while the second phase will cover the area from Beni Suef to Asyut.

Later phases will include developing the areas from Asyut to Qena and from Qena to Aswan.