Financial Times FT.com

Oil and gas: Cairo toes pragmatic line with the IOCs

By James Drummond

Published: December 10 2007 06:51 | Last updated: December 10 2007 06:51

Butagaz! Butagaz!” the man on the donkey-drawn cart calls. As he does so he bangs the side of the canister with the main tool of his trade – his spanner. It is a familiar sound in Cairo still, despite widespread piping of gas to wealthier neighbourhoods of the Egyptian capital and lower Egypt. It may not be for much longer.

Egypt has long been known more for the potential of its gas than its oil. It is home to two big liquefied natural gas plants, one controlled by BG and partners at Idku, and the other by SEGAS, a consortium headed by Union Fenosa, the Spanish utility, and ENI of Italy, at Damietta. Both are on the Mediterranean coast.

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