Dana Gas said on Saturday its Egyptian affiliate had started commercial output at a natural gas liquids (NGL) plant in the North African country, with the first propane cargo loaded on Oct 1.
The Egyptian Bahrain Gas Derivatives Co is a joint venture between Dana's subsidiary Danagaz Bahrain, the government-owned Egyptian Natural Gas Holding Co and Arab Petroleum Investments Corp.
The Ras Shukheir plant will have a production capacity of 120,000 tonnes a year of propane and butane using gas feedstock supplied by Egyptian General Petroleum Corp.
Dana said the project cost 460 million UAE dirhams ($125.2 million), funded through AED 318 million of project finance and AED 105 million equity.
Dana Gas said the plant will market butane inside Egypt and export propane. Residual gas will be supplied to Egypt's national gas grid.