Edison signs joint development agreement with QALAA to build a combined cycle power plant in Abu Qir
Milan, 23 July 2015 – On the occasion of Egypt National Day at Expo, Edison Chief Executive Officer, Bruno Lescoeur, and QALAA Energy CEO, Mohamed Shoeib, signed a Joint Development Agreement to build an 180 MW power plant, which will bring more efficient and sustainable energy to the Egyptian customers. The agreement has been signed within the framework of the Italian-Egyptian Business Council, in the presence of Italy’s Economy minister Federica Guidi.
The agreement envisages that Edison and QALAA Energy will complete the development and authorization process of the plant – a combined cycle facility powered by the gas produced by Edison in the Abu Qir concession - within six months and that the plant will start production within 2017. The building will be very short thanks to the position of the new facility within the industrial site for the treatment of Abu Qir gas and also thanks to the use of some important electromechanical components that Edison will make available. The project has a value of about 100 million euro and will provide efficient and sustainable electric power to Egyptian customers contributing to reduce the structural lack of capacity that characterizes the Country.
"Egypt is a key country for the international activities of Edison, and we have invested 2 billion $ in the last six years - says Bruno Lescoeur, Chief Operating Officer of Edison - Today's agreement confirms our role as a long-term operator in Egypt , we are preparing to become an integrated energy operator, with activities ranging from upstream to power generation, and we put our resources and expertise at service to the country's development”.
Thanks to the new power plant, Edison contributes to the modernization of the egyptian power generation system increasing the electrical capacity and developing a more efficient technology of generation. Through the use of the Combined Cycle Power Plant and a better energy generation technology, it will be possible to reduce the domestic needs for gas for power generation, having at the same time more gas available for other sectors and potentially exports.
Edison is a key player in the Egyptian energy market where it operates since the 90's with activities that are focused on Exploration & Production of hydrocarbons. The company has eight oil concessions, of which three are currently in production: the Abu Qir concession (located offshore in the Nile Delta), which is operated in joint venture with the Egyptian General Petroleum Corporation, the West Wadi El Rayan license in the Western Desert and also a 20% interest in the Rosetta offshore concession. Edison is also involved in five exploration licenses, acquired during the last round of bidding in the Country. Today Edison brings its 130 years long excellence and competencies also in the Egyptian power generation sector aiming at contributing to the further development of the country.
Edison, which is part of EDF Group, is the second largest gas company in Italy, operating in the production and sale of electric power and hydrocarbons sectors with an increasing interest abroad, especially in the E&P sector through 58 concessions and permits in Italy and 37 outside the country: Egypt, Norway, Croatia, Algeria, UK and Israel. In the E&P business the company can count on hydrocarbons reserves for a total amount of 360 million cubic meters equivalent, including reserves in the Egyptian concession of Abu Qir, of which Edison holds all the rights since 2009. Edison gas supply is 15.8 billion cubic meters and covers about a fifth of Italian needs.
Edison Press Office: Elena Distaso Tel. +39 338 2500609 firstname.lastname@example.org