(Ecofin Agency) - Royal Dutch Shell plans to export Liquefied Natural Gas to the global market every 20 days from its Idku liquefaction plant in Egypt, according to a source.

The company exported a shipment of liquefied gas to the markets through Idku, in mid-September after it received about 200 Mmcf/d from the Burullus gas field.

Shell has entered into an agreement with the Ministry of Petroleum to provide Idku with about 125 Mmcf/d of gas for export. This would assist the company in realizing large revenues to pay its loans and dues, according to the senior source in the petroleum sector.

The source added that the Ministry of Petroleum is planning to run Idku at full capacity to export liquefied gas shipments to global markets by 2020/2021.

Idku is to pay back yearly bank installments of about $200 million, out of a loan acquired by Shell for appliances and pipe units worth about $2bn.

So as to achieve autonomy between revenues and expenditures, Idku needs to export about 22 shipments of liquefied gas every year.

The source noted that the government intends to allow Idku to import liquefied gas from Cyprus so as to produce at full capacity in order to achieve economic revenues to the state and foreign partners by 2020.

Idku was fashioned to run for 340 days per year, to be shut down for one month for maintenance. Maintenance costs are estimated at $20m per annum, the source said.

The Egyptian government through the Egyptian General Petroleum Corporation’s (EGPC) with 12% interest and the Egyptian Natural Gas Holding Company (EGAS) with 12% contribute to Idku alongside British Gas with 35.5% interest, Petrona with 35.5%, and Gaz de France with 5% interest, Energy Egypt reports.

Anita Fatunji