Egypt has reportedly commenced the construction on a gas pipeline with an estimated capacity of 15 million cubic feet of gas per day in the Western Desert.

Citing the head of the Egyptian General Petroleum (EGPC), the Petroleum Ministry said that the construction on the project in progress.

The pipeline is being constructed by EGPC, which currently produces about 74,000 barrels of oil equivalent per day.

Moreover, the firm also commissioned Bahar Northwest gas field, which has an initial production rate of 15 million cubic feet of gas per day, reported Al Borsa newspaper.

Earlier this year, Egypt announced plans to invest around $1.4bn to explore oil and natural gas at nine new sites in the Mediterranean and Red Sea.

The state’s Ministry of Petroleum and Mineral Resources said it would drill a total of 23 new wells across both seas and had reached a total of 12 agreements.

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In another development, Abu Dhabi National Oil (ADNOC) has reportedly scrapped its plans to build a 400,000 barrels per day refinery in Ruwais due to the project’s changing economic outlook.

Arab News quoted the Emirati national oil company as saying that the firm regularly assesses market conditions and global supply and demand considerations to ensure its economic resilience and the future-proofing of business operations.

ADNOC added: “As a result of our early feasibility and pre-FEED (front-end engineering and design) studies, we have concluded that at this time a new refinery is not economically attractive.”

In March, Adnoc launched tenders seeking bids for the front-end engineering and design work on petrochemical derivatives projects planned to be built at the proposed Ruwais derivatives park.