Egypt commissions first construction phase of Orient Gas Pipeline

Jul 08, 2002 02:00 AM

The government of Egypt has commissioned the first construction phase of the $ 220 mm Orient Gas Pipeline, linking Egypt to Jordan to begin. The channel has a target date of completion set for March 2003 and is expected to earn Egypt $ 400 mm in revenues annually once fully operational.

Expected to boost inter-Arab investment, the natural gas export deal to Jordan is part of a pact signed between the two countries in June 2001 within the framework of a major project to transport Egyptian gas to Jordan, Syria and Lebanon. The 278 km-long gas pipeline will be extended for 18 km under water of the Gulf of Aqaba, 850-meters down to reach the Jordanian mainland.
The Arab Fund for Economic and Social Development (AFESD) granted Egypt a $ 55 mm soft loan for the project and the Kuwaiti Development Fund contributed $ 108 mm in loans for the pipeline. The rest of the financing is being covered by Egyptian funds.

Source: Al-Bawaba
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