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BG's Egypt unit to invest $2bn

Sherine El Madany
Wednesday 07 July 2010 00:00 BST
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BG Group's Egyptian subsidiary is to invest $2bn (£1.3bn) to install a pipeline and drill new wells off Egypt's Mediterranean coast to help meet the country's growing demand for gas.

BG Egypt, the country's largest natural gas producer, said it expected the new offshore pipeline, its third in the West Delta concession, to be operational by the end of this year. The company will also drill nine wells in West Delta, which will be up and running by late 2011.

BG Group was one of six firms that won offshore oil and gas blocks in the Mediterranean in February. Egypt's proven natural gas reserves were 77.2 trillion cubic feet in its 2008/09 fiscal year, according to the oil ministry, and BG says its production accounts for 35 to 40 per cent of the country's gas output.

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