RWE Dea opens Egypt gas plant

Egypt startup: RWE Dea producing gas at Disouq plant

RWE Dea has begun producing gas from its new central treatment plant at the Disouq development project in Egypt’s Nile Delta.

Production commenced from the new plant with output from five wells from three gas fields - North Sidi Ghazy, South Sidi Ghazy and North West Sidi Ghazy.

RWE Dea chief operating officer Dirk Warzecha said that the company had achieved significant production growth in Egypt to contribute to local energy production despite “starting the project during difficult times in the country, which required special measures for security and logistics”.

Output from the plant began at an initial rate of 45 million standard cubic feet gas per day and has ramped up to 90 MMscf/d in recent days, with further rises expected next year when seven more wells are brought online.

The Hamburg-headquartered operator is producing more than 150 Mmscf/d at the project altogether including existing production from the concession’s North West Khilala field.

The North West Khilala field came online last September, with volumes being routed to a processing facility operated by production partner Suez Oil Company that are separated into dry gas and condensate before being fed into the national supply grid.

RWE Dea expects further production increases from the new plant and North West Khilala to lift production to capacity levels of around 200 MMscf/d in 2015.

It holds 100% of the shares in the seven-field development concession with Egyptian Natural Gas Holding Company (EGAS) as state partner.

The exploration and production arm of German utility RWE was sold to the LetterOne group of investors led by Russian tycoon Mikhail Fridman last year in a sale rumoured to be getting Germany's go-ahead despite Western sanctions against Russia over the Crimean crisis.

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