The Egyptian division of the oil supermajor Shell reached a preliminary agreement with Energean PLC to decarbonize Shell’s Idku liquefied natural gas marine terminal on the Mediterranean.
Energean said it will capture and store carbon dioxide in a depleted reservoir in the Abu Qir offshore concession operated by Energean.
CEO of Energean International and Country Manager Egypt said: “CCS in Egypt can only be developed in long term partnerships with industries willing to ‘green’ their products.”
Energean will draw on its experience in developing a carbon capture and storage solution in a depleted hydrocarbons field in Prinos, Greece.
The company said Egypt has favourable conditions for CCS because of its well-studied depleted gas fields, adjacent to new production facilities. The country also has an infrastructure, skills, and demand from global markets and stakeholders for decarbonized molecular energy products.
The Egyptian government has announced several projects to reduce its carbon emissions.
The country enjoys an abundance of sunshine and a lot of wind and has recently seen an increase in foreign green hydrogen investment. Egypt hosted COP 27 last November, during which it signed eight framework agreements for hydrogen projects, including an $8 billion green hydrogen factory in the Suez Canal Economic Zone.