Shell Egypt, EGAS and Petronas, have announced the awarding of a front-end engineering and design (FEED) contract to a Bechtel-led coalition that includes Enppi and Petrojet, to study a proposed unified power system between the onshore gas processing plant of the West Delta Deep Marine (WDDM) gas fields in the Mediterranean Sea off the Egyptian coast, and the Egyptian LNG export terminal (ELNG) in Idku, east of Alexandria.

Integrating electrical power systems

The FEED contract for the Idku Energy Hub project will explore the benefits of a One Power Hub concept, integrating the electrical power systems at the WDDM and ELNG, as opposed to having two separate systems, a statement said.

It will seek to increase the power saving and greenhouse gas (GHG) abatement benefits of unifying the electrical power systems of the onshore plants. The synergies will include optimisation of the number of running gas turbine generators, modelling the most efficient operating mode for both plants, reducing GHG emissions and economising the fuel consumption in the entire hub, it continued.

"I am so proud that the oil and gas sector is contributing significantly to achieving top strategic goals: accelerating decarbonization and economising power consumption," the Minister of Petroleum and Mineral Resources Tarek El-Molla, said. 

"I am pleased that our partners are taking such initiatives to promote these priorities."

The project is part of a wider programme between the coalition and the Egyptian Ministry of Petroleum and Mineral Resources (MOP), which is aimed at decarbonising existing oil and gas facilities across the country and to deliver on Egypt’s climate change strategy.

"This project is a demonstration of our commitment to powering progress by providing more and cleaner energy," said Khaled Kacem, Vice President and Country Chair of Shell Egypt. "As partners in Egypt's journey to become a regional energy hub we are also mobilising our efforts and expertise to support the country's energy efficiency ambitions. This is also a significant step towards full implementation of the decarbonisation MOU between Shell and the MOP that was signed earlier this year."

Egypt's decarbonisation strategy

Bechtel, Enppi and Petrojet will execute the FEED contract on a fast-track basis, with the aim of completing the scope of work within 2022, the statement said.

It added that by reducing greenhouse gas emissions and optimising fuel consumption and running hours of the rotating equipment, production will be enhanced, and operating costs would be reduced.

"This project is an excellent example of private and public sector partnership to support Egypt's decarbonisation strategy. Our Bechtel team is looking forward to continuing to support Egypt's climate change strategy,” concluded Paul Marsden, President of Bechtel Energy.