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Dubai: Dana Gas, the Sharjah-headquartered private-sector natural gas company, has completed the acquisition of a controlling stake in its Bahraini affiliate, Danagaz Bahrain.
The share purchase agreement was signed by Shaikh Hamad Bin Ebra-him Al Khalifa and Hamid Dhiya Jafar, executive chairman of Dana Gas.
Under the agreement, Dana Gas will hold 66 per cent of the Bahrain firm and the remaining 34 per cent will be owned by Bahraini partners. The new joint venture will invest in the Gulf of Suez gas-to-liquids plant in Egypt.
The scope of the project involves the engineering, fabrication, installation and operation of a high-efficiency gas liquids extraction and manufacturing plant near Ras Shukheir on the western shore of the Gulf of Suez in Egypt.
Capacity
The new plant will have the capacity to process approximately 55 billion cubic feet per year of natural gas and will produce approximately 120,000 metric tonnes per year of liquid propane and butane.
The project will be executed by a joint venture company, Egyptian Bahraini Gas Derivative Company (EBGDCO), which will be owned 40 per cent by Danagaz Bahrain, 40 per cent by state-owned Egyptian Natural Gas Holding Company (Egas) and the remaining 20 per cent by the Arab Petroleum Investment Corporation (Apicorp).
"The project strengthens our strategic position in Egypt, and also enhances our capabilities in the region's important gas processing sector, where we already have several gas processing plants, including in Egypt, the UAE and another two being established in northern Iraq," said Rashid Saif Al Jarwan, general manager of Dana Gas.
The agreements for completion of the project have already been finalised and signed.
These include a long-term contract for supply of natural gas from the Egyptian General Petroleum Corporation (EGPC), as well as the land agreement and sea berth agreement for export of the products.
The joint venture company EBGDCO is being incorporated as a "Free Zone" company under the Egyptian law on Investment Guarantees and Incentives. Implementation of the project will commence soon and is expected to take 18 months to completion, the company said.
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