EGAS Exempted from $270m Fine for Damietta Gas Cuts

EGAS Exempted from $270m Fine for Damietta Gas Cuts

The Paris-based International Court of Arbitration has declared that the Egyptian Natural Gas Holding Company (EGAS) will be exempted from paying a $270m fine related to gas cuts at its foreign-owned LNG plant in Damietta, reported Reuters.

The fine was issued by the International Chamber of Commerce in 2013 based on the Damietta LNG plant’s complaint accusing the state partner of failing to comply with the contracted rules by halting gas supplies in 2012 and not paying any compensations.

Ahram Online wrote that EGAS had agreed to supply approximately 700mcf/d of gas to Segas, but in 2010, the amount of gas delivered was reduced to 400mcf/d, while in 2012 the gas delivery was completely cut off.

Union Fenosa Gas (UFG), a joint venture between Spain’s Gas Natural and Italy’s Eni, owns 80% stake of the LNG plant, while the remaining 20% stake is equally divided between state-owned companies EGAS and EGPC.


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