Egypt to Restart Damietta Liquefication Plant Operations

Egypt to Restart Damietta Liquefication Plant Operations

Eni company has signed several agreements with the Egyptian General Petroleum Corporation (EGPC), the Egyptian Natural Gas Holding Company (EGAS), and the Spanish company Naturgy, to restart the operations in Damietta liquefaction plant in Egypt by June 2020, Eni said in a press release.

According to the agreement, the participation of Union Fenosa Gas in the Damietta plant, which is 80%, will be transferred 50% to Eni and 30% to EGAS. The resulting shareholding of SEGAS will therefore be Eni 50%, EGAS 40% and EGPC 10%.

It is worth noting that SEGAS company is the owner of the liquefaction plant’s which is 40% owned by Eni through Union Fenosa Gas (50% Eni and 50% Naturgy).

Additionally, the agreement stated that Eni will take over the contract for the purchase of natural gas for the plant and will receive corresponding liquefaction rights.

The capacity of the Damietta liquification plant is 7.56 billion cubic meters per year, and it has not been working since November 2012.

The Ministry of Petroleum and Mineral Resources, said in another press release, that once the agreement is implemented, international arbitration issued against Egypt will be settled and all the disputes between Egypt, EGAS and Union Fenosa Gas, SEGAS will be settled. These disputes are related to buying and purchasing natural gas as well as the utilization of the liquefication capacity of the plant.

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Fatma Ahmed 2046 Posts

Fatma Ahmed is a staff writer with six years’ experience in Journalism. She is working in the field of oil and gas for four years. She also worked in the field of economic journalism for 2 years. Fatma has a Bachelor Degree in Mass Communication.

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