Eni advances plans for Zohr gas processing plant

Eni SPA is moving forward with plans to build the first of two natural gas plants in Egypt as part of its program to increase processing capacity for gas from its deepwater Zohr development in the Mediterranean offshore Shorouk concession (OGJ Online, Mar. 10, 2016; Feb. 26, 2016; Sept. 7, 2015).

Construction is already under way on the planned processing plant and associated gathering installations in Port Said, the Egyptian Ministry of Petroleum said.

The processing plant follows Eni’s decision to accelerate production from Zohr field, the first two development phases of which previously were to use existing infrastructure and processing capacities.

With the Zohr development now on a fast track, however, the company amended the project scope to add more onshore processing and pipeline capacities to accommodate the 2017-19 startup timeline, according to Eni’s Mar. 18 strategy update for 2016-19.

Contracts were signed and civil works already under way for the plant as of March, Claudio Descalzi, Eni’s chief executive officer, said at the time.

Expedited as part of an effort to reduce costs and financial exposure, Zohr’s accelerated 1-bcfd startup phase is scheduled to begin production from six subsea wells connecting via a gas pipeline to the onshore plant at Port Said by yearend 2017 (OGJ Online, Feb. 22, 2016).

The project’s second phase, or the accelerated ramp-up-to-plateau, will add another 14 wells to boost production to 2.7 bcfd from 2019.

Second-phase plans also include another gas line as well as an additional onshore processing plant, according to a January presentation from Eni.

The two gas processing plants will each host four processing trains of 350 MMcfd each.

Eni said it expects a total capital investment of less than €12 billion for both phases of the Zohr development.

Eni holds a 100% share in the Zohr prospect, through its subsidiary IEOC Production BV.

Contact Robert Brelsford at rbrelsford@ogjonline.com.

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