Apache Corporation won the endorsement of the Egyptian General Petroleum Corporation (EGPC) to originate a pipeline with the capacity of 24 inch, from Abu Al Gharadiq to Dahshur 220 km along and $550 million total cost.

The rationale of this pipeline is to accommodate the volumes of gas extracted from the company’s concessions, which are located in the Matruh and Western Desert Gas Complex in Al Amreya.

The company’s current capability of gas extracted reached 100 million cubic feet. Apache is aiming to add the same amount to be transferred through that pipeline, which ends at the gas processing unit in Dahshur.

Enppi, Petrojet, and Petrofac are among the companies applying to establish the new pipeline, which is considered the extension of the original line that starts from Apache’s acquisition area, from Matruh to Abu Al Gharadiq in the Western Desert, with a capacity of 40 million cubic feet.

The gas processing unit at Dahshur accommodates 135 million cubic feet of gas, which requires the establishment of another station close to the old one. The gas from this station is being transferred to the gas cylinders companies in Giza. It is rumored that Dana Gas is aiming to invest into founding this new station given to its revenue, but yet it is expected that Apache will build it on its own expenses.