ConocoPhillips Technology Licensed for Egyptian LNG Project

ConocoPhillips has been awarded a license agreement from El Behera Natural Gas Liquefaction Company S.A.E. for application of ConocoPhillips' proprietary liquefaction technology at a liquefied natural gas (LNG) facility to be located at Idku, Egypt. The agreement provides a license to utilize the technology for the first LNG train with an option to license a second train.

The liquefaction technology is an enhanced version of the technology utilized for ConocoPhillips' Kenai, Alaska, facility. The Kenai facility was constructed by Bechtel Corporation in 1969 and has since demonstrated more than 33 years of uninterrupted LNG supply to Japan. An aggressive effort to update and commercialize the technology began in 1993. The first license was signed with Atlantic LNG Company of Trinidad & Tobago in June 1996 with options for three additional trains. The El Behera license marks an important milestone in ConocoPhillips' LNG licensing efforts, as it is the fourth license overall and the first outside of Trinidad & Tobago. Several other LNG licensing projects are in various stages of development.

Rick Hernandez, ConocoPhillips LNG licensing manager, said, "This newest license is an exciting part of an overall effort to increase the use of ConocoPhillips' proprietary LNG technology in world-scale LNG projects throughout the world. The recent success of the technology licensed for Atlantic LNG in Trinidad, combined with our own 33 years of successful operation at Kenai, Alaska, gives us every confidence in the reliability, safety and competitive position of the technology."

El Behera LNG train one is designed to produce 3.6 million tons per year with first production scheduled for the third quarter of 2005. Participants in the first train are: BG, 35.5 percent; Edison International, 35.5 percent; Egyptian Natural Gas Holding Company (EGAS), 12 percent; Egyptian General Petroleum Company (EGPC), 12 percent; and Gaz de France, 5 percent.