Allseas to Provide Services for the Taba-Aqaba Pipeline

Allseas will begin work to extend the 15-kilometer gas pipeline that links the Egyptian city of Taba with Jordan's southern port city of Aqaba early next month. The pipeline, which stretches through the Gulf of Aqaba, is expected for completion by early June, said an official at the Ministry of Energy and Mineral Resources. The cost to extend the pipeline is estimated at $70 million.

The natural gas transported by the pipeline will be used by the Aqaba Thermal Power Station to produce electricity. The station, established in 1986 and relying on heavy fuel, currently produces around 650 megawatt, nearly 40 percent of the Kingdom's total capacity of 1,500 megawatt.

An Egyptian consortium, that includes Egypt Holding Gas Company, GASCO, Petrojet and Emppi, will extend the pipeline from Aqaba until reaching the northern parts of the Kingdom where gas will be provided to power stations there.

The pipeline is part of a regional project whereby Egypt, with proven reserves of gas estimated at more than 56 trillion cubic feet, will provide gas to Jordan, Lebanon, Syria and European states such as Turkey, Romania and Bulgaria.

The Egypt-Jordan section of the pipeline is expected to cost $230 million, while the Jordan-Syria section is estimated at $300 million.

The pipeline will be implemented on build-own-operate-transfer (BOOT) basis.