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UAE-based Dana Gas has said that its $125m joint venture extraction plant in Egypt has shipped its first cargo.

The Egyptian Bahrain Gas Derivatives Company’s NGL extraction plant at Ras Shukehir in Egypt, which is the first of its kind in the Gulf of Suez, shipped its first cargo of propane on October 1.

This marks the start of commercial operations at a plant which is expected to extract 100,000 tonnes of gas per day from a nearby refinery run by the Egyptian General Petroleum Company (EGPC).

Rashid Al Jawan, executive director and acting CEO of Sharjah-based Dana Gas, said: “We are extremely pleased to complete this plant with our joint-venture partners. It is an important part of our long-term programme in Egypt, in terms of supporting their energy sector, and we are pleased that this has now been successfully completed.

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“The Ras Shukheir plant is now our third gas processing plant to be commissioned in Egypt and we expect first revenue and cash flows in this quarter.”

The plant cost $125m to build – $86m of which was provided through project finance. Danagas put in $7.6m for its share of the equity in the venture.

The investment was made through its Bahrainian subsidiary, Danagaz Bahrain, in which it owns a 66% stake.