The Ministry of Petroleum and Mineral Resources announced that a convention of more than 40 agreements to settle disputes with some companies has entered into force, according to a press release.
The agreements settle all disputes that rose out between the Egyptian Natural Gas Holding Company (EGAS) with the Union Fenosa Gas (UFG), and the Spanish Egyptian Gas Company (SEGAS).
The deal also ensures resuming production of Damietta liquefied natural gas (LNG) plant of SEGAS Company and increasing as well the capacity of EGAS in the Damietta LNG plant. It also includes that the EGAS and the Egyptian General Petroleum Corporation (EGPC) own 50% of SEGAS shares while the other 50% of shares will be owned by Eni.
The agreements will enhance Egypt’s position as a natural gas regional hub by increasing the capacity of LNG that will open the door to other natural gas producing-countries that want to benefit from Egypt’s infrastructure.