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BG International, an affiliate of Shell, will operate the field with a 60 percent stake alongside partner, Kufpec (Egypt) (40 percent), working in close collaboration with state-owned EGAS, according to Shell.
Discovered in October 2023, the Mina West gas field will be developed as a subsea tie-back to the existing infrastructure of West Delta Deep Marine (WDDM).
Shell noted that this targeted investment contributes towards growing its combined integrated gas and upstream total production by 1 percent per year to 2030.
Moreover, the investment in Mina West is expected to generate an internal rate of return in excess of the hurdle rate for Shell’s integrated gas business.
Shell did not disclose the project’s price tag.
“Investing in new production at Mina West expands our industry-leading integrated gas business and supports delivery of secure, reliable energy to Egypt’s domestic market in-line with our strategy to create more value with less emissions,” Dalia Elgabry, VP and country chair of Shell Egypt, said.
Shell has been active in Egypt for over 100 years and its integrated portfolio includes exploration, upstream operations, and LNG through its Egyptian LNG (ELNG) JV.
The company operates the 7.2 mtpa ELNG terminal in Idku, east of Alexandria, along with its partners Egypt’s EGAS and EGPC, Malaysia’s Petronas, and France’s TotalEnergies.
However, Egypt shifted from being an LNG exporter to an importer early last year due to declining domestic gas production and rising demand for cooling amid multiple heatwaves.
EGAS is deploying chartered FSRUs to meet soaring gas demand for cooling and avoid power outages.