New Piping Modifications in SUCO, Agiba and GUPCO (U-102 & U-104) Existing Facilities

The Egyptian General Petroleum Company (EGPC) has concluded an agreement in conjunction with the Egyptian Bahraini Gas Derivatives Company (EBGDCO) and Engineering for the Petroleum and Process Industries (ENPPI), to implement a piping and instrumentation modifications project in the existing facilities of companies SUCO, Agiba and GUPCO. The target of the project is to create a new circulation stream to supply EBGDCO’s NGL plant with 150 MMSCFD feed gas.

Overview of the Project
EBGDCO’s Gulf of Suez NGL plant project consists of the installation of a gas liquids extraction plant with the capability of processing 150 MMSCFD of natural gas and recovering 360 tons and 45 tons a day of propane and butane respectively. The natural gas to be processed will be supplied by the EGPC.

The implementation of the EBGDCO NGL plant project, which will secure 150 MMSCFD feed gas, encompasses two modifications; the first would divert 50 MMSCFD of rich gas from SUCO to GUPCO U-104; the second would divert 50 MMSCFD of lean gas, from EBGDCO to SUCO.

Contracting Features
Firstly, Enppi must secure its board approval for the deferred payment scheme. A tripartite contract would then be signed by the EGPC, EBGDCO and ENPPI, confirming the agreement between the involved parties.

Second, EBGDCO will assume the responsibilities of payments, coordinating other companies’ existing facilities, providing and confirming the accuracy of needed data, arranging the shutdown of the existing facilities as required. It is additionally responsible for securing permits, safety precautions and observing HSE standards of the existing facilities.
Lastly, after the signing of the contract, EBGDCO will issue an irrecoverable and unconditional Bank letter of Guarantee to ENPPI equal to the principle lump sum price. The lump sum of the Engineering, Procurement and Construction (EPC) contract covers supply and construction activities with a provisional sum for custom duties and sales taxes that would be paid at the actual cost plus 15%.

Description of Planned Modifications
The proposed modifications include the installation of a new (12”, 300#, 500 M) pipeline to divert a portion of SUCO’s gases to tie-in with AGIBA/U-102 20” pipeline. Connected to the aforementioned pipeline, a new (16”, 300#, 4.0 KM) pipeline will be installed to comingle SUCO gases to U-102 outlet gases to U-104.

The comingled gases will then be directed through the existing (16”, 300#, 29.0 KM) pipeline to U-104. Afterwards, a new (10”, 600#, 500M) pipeline will be installed to divert EBGDCO gases to the existing U-104/SUCO (16”, 300#, 37.0KM) pipeline.

The Final modification is reversing the flow in the(16”, 300#, 37.0KM) pipeline to divert gases in the reverse flow from U-104 to SUCO.

Consequences of the Modifications
The outlet pressure from U-102 to U-104 will have to be increased from 16 Kg/cm²g to 18.33 Kg/cm²g. Meanwhile, if the outlet pressure from Agiba is 7Kg/cm²g and 18.33 Kg/cm²g from U-102, it is not feasible for Agiba to supply gas into the existing 20” pipeline unless it increases its outlet pressure.

Benefits and Revenues
EBGDCO currently stands at netting $9.5 million after covering the cost of expenses and taxes, which is $36 million. After the proposed modifications, the company would net $27 million after covering 43$ million of expenses and taxes.

The EGPC would gain 9,860 tons per year of butane (C4) in the case of 100 MMSCFD and 12,326 tons per year in the case of 150 MMSCD. 

Compiled by Wael Serag


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