BP Nearing Gas Deal

BP is close to concluding a deal for the sale of natural gas to the SEGAS LNG export scheme in Egypt, according to sources.

Under the prospective agreement, BP will sell natural gas to the Spanish-Italian joint venture and will then purchase LNG from the scheme. SEGAS is a joint venture of Spain's Union Fenosa and Italy's ENI and is one of the two LNG production schemes currently under way in Egypt. The natural gas sold by BP will amount to about 1-2tn cubic feet and will come from BP's concession east of Alexandria, on Egypt's Mediterranean coast.

SEGAS's LNG train will enter production at the end of 2004.