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Shell, EGAS and Petronas award Idku Energy Hub project FEED to Bechtel-led coalition

Decarbonizing Egypt’s facilities for a net-zero future

Shell Egypt, EGAS and Petronas have awarded a front-end engineering and design (FEED) contract to a Bechtel-led coalition that includes Enppi and Petrojet to study a proposed unified power system between the onshore gas processing plant of the West Delta Deep Marine (WDDM) gas fields in the Mediterranean Sea off the coast of Egypt and the Egyptian LNG export terminal (ELNG) in Idku, east of Alexandria.

The FEED for the Idku Energy Hub project will explore the benefits of a One Power Hub concept, integrating the electrical power systems at the WDDM and ELNG, as opposed to having two separate systems. It seeks to increase the power saving and greenhouse gas abatement benefits of unifying the electrical power systems of the onshore plants. The synergies will include optimization of the number of running gas turbine generators, modelling the most efficient operating mode for both plants, reducing greenhouse gas emissions and economizing the fuel consumption in the entire hub.

This project is part of a wider program between the coalition and the Egyptian Ministry of Petroleum and Mineral Resources aiming to decarbonize existing oil and gas facilities across the country and deliver on its climate change strategy.

“I am so proud that the oil and gas sector is contributing significantly to achieving top strategic goals: accelerating decarbonization and economizing power consumption,” His Excellency Minister of Petroleum and Mineral Resources Eng.Tarek El-Molla said. “I am pleased that our partners are taking such initiatives to promote these priorities.”

“This project is a demonstration of our commitment to powering progress by providing more and cleaner energy,” Eng. Khaled Kacem, vice president and country chair of Shell Egypt, said. “As partners in Egypt’s journey to become a regional energy hub we are also mobilizing our efforts and expertise to support the country’s energy efficiency ambitions. This is also a significant step towards full implementation of the decarbonization Memorandum of Understanding between Shell and the Ministry that was signed earlier this year.”

"This project is an excellent example of private and public sector partnership to support Egypt’s decarbonization strategy," Paul Marsden, president of Bechtel Energy said. "Our Bechtel team is looking forward to continuing to support Egypt’s climate change strategy."

Bechtel, Enppi and Petrojet will execute the FEED on a fast-track basis aiming to complete the scope of work within 2022.

The project is a testimony to the operational excellence in WDDM and ELNG plants. Reducing greenhouse gas emissions and optimizing fuel consumption and running hours of the rotating equipment will enhance production and reduce operating cost.