CAIRO, Jan 20: Egypt unveiled on Monday plans to expand its gas export facilities, capitalizing on its closeness to the European market where demand for the clean fuel is rising.

Egyptian Petroleum Minister Sameh Fahmy told a gas conference here that negotiations were under way with foreign companies to expand gas liquefaction ventures under construction at Idku and Damietta, near Alexandria.

“Under negotiations, we have in Idku (production) line two and maybe also ... line three, and adding capacity to the Damietta unit,” he said.

“The commitment of the Egyptian government to gas exports is very clear,” he said, adding that one of the advantages of Egypt “was its proximity to the European market where demand is growing.”

British energy group BG confirmed plans to set up a third line that will triple initial production of the Egyptian Liquefied Natural Gas (ELNG) plant being built at Idku.

“It’s time to think about train 3,” said BG Egypt Vice President Stuart Fysh, whose company is a main shareholder of ELNG.

Gaz de France signed last year a 20-year contract with ELNG to take delivery of train one’s full output of 3.6 million tons per annum (mtpa) due to come on stream in 2005.

BG announced on January 7 that works have started on a second train with the same capacity after US and European customers showed interest in its production expected to start in 2006.

Fysh said works on the 3.6 mtpa third train are expected to start in 2003 and production to kick off in 2007.—AFP