Egypt to build first stationary gasification unit, operational by 2027

Egypt will start operations at its first fixed gasification unit, costing $200 million, in August 2027, an official speaking on condition of anonymity told the pan-Arab Saudi broadcaster “Asharq.”

The official explained that the project is being built within the decommissioned Idku plant, in Beheira Governorate, northwest of Cairo, in partnership between the Egyptian government, Shell, and Petronas, which hold the rights to operate and exploit the plant under a 25-year contract that began in 2005 and expires in 2029. "The two companies will receive a two-year operating fee for their share in the plant, with the right to operate Idku and the new gasification unit reverting entirely to the Egyptian state at the end of the contract," the official stated. Shell and Petronas own approximately 71 percent of the Idku plant, divided equally. The Egyptian government, represented by the General Petroleum Corporation and the Egyptian Natural Gas Holding Company (Egas), owns approximately 24 percent, divided equally. The remaining 5 percent is held by the French company Engie.