Eni to Export Gas via Damietta Plant

Eni to Export Gas via Damietta Plant

Italian Eni agreed with the Egyptian government to export part of the production of Zohr field in Shourouk Concession in the Mediterranean via Damietta liquefaction plant, reported Daily News Egypt.

Sources with the Egyptian government stated that Eni will establish a pipeline connecting between the Zohr treatment plant and the Damietta liquefaction plant. It is noted that Eni owned 25% stake in the plant before having bought 50% of Unión Fenosa interest, boosting its stake in the plant to 50%, reported Al Borsa. Russian Rosneft will construct the pipeline in Egypt to export gas to Europe across the Mediterranean, following the purchase of part of the Shorouk concession.

Eni sold 40% interest in the concession, with 30% going to to Rosneft for $1.125b and $450m in previous investments, and 10% to BP for $375m and $150m for previous expenses. Both BP and Rosneft have the option to buy an additional stake of 5% each.

The transactions came as Eni plans to secure enough funds for the project by 2020, with investment projections reaching  between $12b and $16b.

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Sarah Samir 3751 Posts

Sarah has been writing in the oil and gas field for 8 years. She has a Bachelor Degree in English Literature. She has three years of experience in the banking sector.

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