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UK’s BP Starts Production From Egypt’s Qattameya Gas Field

UK’s BP Starts Production From Egypt’s Qattameya Gas Field

Tuesday, 27 October, 2020 - 11:00
A BP logo is seen on a petrol station in London November 2, 2010. REUTERS/Suzanne Plunkett

UK’s BP has announced the start of gas production from its latest development ‎offshore Egypt – the Qattameya gas field in the North Damietta offshore concession.

In a statement on Monday, it explained that the field is ‎expected to produce up to 50 million cubic feet of gas per day.

It has been developed through joint venture Pharaonic Petroleum Company (PhPC), which included BP and Egyptian Natural Gas Holding Company (EGAS), the statement noted.

The discovery of Qattameya gas field was announced in 2017. It is located approximately 45 km west ‎of the Ha’py platform, in 108 meters of water. It is tied back to the Ha’py and Tuart field ‎development via a new 50km pipeline and is also connected to their existing subsea ‎utilities via a 50 kilometers umbilical.

‎BP has 100 percent equity in the North Damietta offshore concession in the East Nile Delta. ‎Gas production from the field is directed to Egypt’s national grid.‎

‎“We are proud to have brought this project safely on stream through an extremely ‎challenging period. Our team continues to work to help Egypt realize the potential of its ‎energy resources,” said BP’s North Africa regional President Karim Alaa.

Separately, Egypt’s Idku liquefied natural gas (LNG) plant is preparing to load a cargo for export, its first in three months, data intelligence firm Kpler said on Monday.

LNG tanker Cape Ann arrived at Idku on Monday and is expected to be the plant’s first LNG export cargo since late July, Kpler analyst Rebecca Chia said.

Prior to the cargo in July, no loadings were seen from the plant since March, shiptracking data from Kpler and Refinitiv Eikon showed.

“Egyptian exports were already halted in late March as weak global LNG prices led to a total collapse in the number of shipments from the facility,” Chia said.

The Idku plant has exported seven cargoes totaling 0.45 million tons this year, compared with 57 LNG cargoes totaling 3.66 million tons last year, she added.

Asian spot LNG prices LNG-AS which had dropped to record lows in May, spiked to their highest in nearly two years on Friday. This in turn is expected to stoke exports, especially from spot-focused LNG export plants, traders said.

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