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US’ Chevron, EGAS ink MoU for development of East Mediterranean natural gas


Arab Finance: The Egyptian Natural Gas Holding Company (EGAS) has signed a memorandum of understanding (MoU) with the US-based Chevron Corporation for cooperation in the transmission, import, liquefaction, and export of East Mediterranean natural gas through Egypt, according to an official statement on June 20th.

The protocol aims to develop the infrastructure required for the transmission of natural gas from the East Mediterranean.

EGAS and Chevron have agreed on forming a negotiation committee through which both parties can reach agreements on future natural gas projects in East Mediterranean.

Under the MoU, the two companies will also assess opportunities for transmission of natural gas in the East Mediterranean to Egypt to maximize its value by liquefaction before re-exporting and selling thereof.

The two companies will also conduct studies on low-carbon natural gas.

Chairman and CEO of Chevron Corporation Michael Wirth revealed that his company has plans to drill the first exploratory well in its concession area in East Mediterranean next September, adding that seismic studies are good.

The seismic works in Chevron’s concession in the Red Sea have seen progress and the hydrocarbon potential in the region is great, Wirth said.

The top executive stated that his company’s marketing of the oil factory in the 6th of October City can contribute to satisfaction of demands in Egypt and Africa, which could make Egypt a hub for oil exports in the continent.

Chevron is likely to participate in investment opportunities in the fields of petrochemicals and advanced technology, Wirth remarked.

On June 15th, Egypt signed an MoU with Israel and the European Union (EU) on cooperation in the trade, transmission, and export of natural gas.

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