BP Signs $12 billion gas Deal in Egypt
(Photo Credit: BP)
BP has reached an agreement to invest with a partner about $12 billion to develop natural gas resources in Egypt. The oil company said it would develop a large quantity of offshore gas, and bring it onshore to be consumed by customers. The project focuses BP’s commitment to the Egyptian market and is a vote of confidence in Egypt’s investment climate and economic potential. The economics of the BP project will be helped by using BG’s existing gas pipelines and infrastructure in Egypt to help cut costs. While the new supplies will probably not be enough to enable BG to resume exports of liquefied natural gas, BG will receive payments for the use of its pipelines and processing plants.