Egypt postpones Israel offer to construct a liquefaction facility on the shores of the Red Sea
A reliable source told the East Mediterranean Monitor, that Egypt postponed Israel offer to construct a liquefaction facility on the shores of the Red Sea in Sinai, which natural gas can be exported to markets in Asia.
The idea of building the facility was raised by, Minister of National Infrastructure, Energy, and Water Resources Dr. Yuval Steinitz took place in East Mediterranean Gas Forum (EMGF) in Cairo, Egypt last week.
The estimated cost of building such a medium-sized land-based liquefaction facility is projected in the $10-15 billion range.
The rejected facility on the Red Sea was designed to open the option of exporting Israeli and Egyptian liquefied natural gas (LNG) to the East Asian market: India, China, Japan, South Korea, and other countries, which constitute 70% of the global liquefied gas market.
The initiative is similar to the one previously promoted by Eilat-Ashkelon Pipeline Co. (EAPC), which wanted the facility to be in Israeli territory near Eilat. The idea was shelved due to strong opposition, among other things by the Ministry of Environmental Protection.
Egypt postpones the idea because currently they have two Liquefied Natural Gas facility Idku, and Damitta, not working to full capacity, the idea is postponed waiting for achieving more future mega discoveries which can run Liquefied Natural Gas facilities with full capacity.
Egyptian Liquefied Natural Gas (ELNG) is considered one of the most renowned companies specialized in liquefied natural gas on both the Egyptian and international levels. Located at Idku, 50km east of Alexandria, Egyptian LNG can accommodate an expansion of up to six trains in total with potentially different ownerships and sources of feed gas. Currently, two trains are up and running, each at a capacity of 3.6 million tonnes per annum.