Foreign partners have agreed to fund an electricity station to produce up to 8,000 barrels, and attract investments amounting to USD 47 million. This is following the company’s success in reducing the cost of barrels, and maximizing the use of natural gas to manage all machinery and pumps—under the guidance of the Minister of Petroleum and the President of EGPC—that will reduce the imported amount of diesel and currency, made possible by the confidence of foreign partners in the feasibility of such projects.
The East Baharia and Heba concessions contain about 78 wells of oil and water, and are produced from these wells using pumps powered by mobile generators ranging from 256 to 480 kilowatts. However, each well has its unique diesel generator and is scheduled to drill 25 wells during the coming year.
The diesel fuel that is used in the current generators costs about USD 19 million annually, which is imported from abroad and is considered too pricey.
Therefore, to reduce the price of this fuel, the company has conducted engineering studies for using natural gas located in the western desert and the establishment of a power plant powered by natural gas in East Baharia, with capacity of 16 MW. The plant is to feed the well regions at East Baharia and Heba, as well as,, feed the oil stations and water injection stations at the two regions, in addition to the secondary electrical needs, such as camps.
The project consists of six gas turbines, the capacity of each being 3.2 MW per turbine. Switch gear building, in addition to the transformer station which will transfer power to the wells and shipping stations, and water injection through the overhead transmission lines with length of 30 km and fuel gas to the power plant, shall be connected through an 8-inch pipeline along the 20 km line linking by Abu Algradik / Dahshur.
Initiating this power plant in East Baharia reduces the operation of diesel generators to 78, which are currently in service within the concession area at East Baharia. The estimated capital savings associated with the transfer of the 78 generators to remote locations is around USD 4,290,000, in addition to the termination of contracts and the provision of 13 rented electric generators.
The total estimated value of the provision of annual diesel fuel is about USD 19 million annually, and the installation of the power plant will reduce downtime of production, and improve the operation efficiency and the age of pumps within the wells. These overhead transmission lines shall provide the energy needed to run the large water injection pumps, which require high-power capacity. They can’t be operated in the case of a mobile generator shortage, which also reduces the risk of a production loss relating to the supply of diesel fuel. The expenses of this loss for the project will be fully recoverable within 30 months from the start of the project.
The cost of this project is USD 47 million and ENPPI shall carry out engineering and designs, EMC is responsible for electric and mechanical installation work, and Petrojet shall construct the gas pipeline to get this project completed within two years.
Through this project, the company aims to increase the investment value of Egyptian companies (EMC, PETROJET, ENPPI, Elswedy, ELMACO, and ABB) by approximately USD 25,826,604, and incur foreign investments amounting to approximately USD 21,706,397, represented in the value of gas turbines. This is meant to increase the confidence of foreign partners in Egyptian products and the status of the Egyptian economy, thus providing foreign currency and job opportunities for technical staff.
Contractor implementation: ENPPI, Petrojet, EMC, ELSWEDY, ELMACO.
The operation of three turbines using gas fuel, and the completion of the entire project is expected during the month of December of 2013.
By Eng. Amr Mohamed Hafez- Project Dept. Head
Reported By Wael El Serag