Saudi Electricity Company and Egyptian Electricity Holding Company are seeking government approval to connect their countries' power grids, according to a magazine report.

The scheme will allow Egypt and Saudi Arabia to share their generating reserves and exchange power, the Middle East Economic Digest reported, citing a source close to the project. The magazine did not give the value of the proposed project.

A team from Belgium's Tractebel Engineering and Centro Elettrotecnico Sperimentale Italiano submitted a feasibility study to the two electricity companies in late March, according to the issue published late on Friday.

The potential project could provide a link between the Gulf Arab region's networks and Europe.

The tender for the year-long consultancy contracts will be issued within a month of the governments' approval, and an award could be made as early as September, it added.-Reuters