Eni signs deals to reopen Egypt’s Damietta LNG plant by Q1-21

Italian energy giant Eni signed a series of agreements in Egypt to reopen the Damietta liquefied natural gas (LNG) plant in the first quarter (Q1) of 2021.

The agreements were signed with the Egyptian General Petroleum Corporation (EGPC), the Egyptian Natural Gas Holding Company (EGAS), and the Spanish company, Naturgy, according to a statement on Tuesday.

This will lead to the amicable settlement of the pending disputes between Union Fenosa Gas and SEGAS with EGAS and Egypt. In addition, Union Fenosa Gas will be restructured and its assets will be shared between Eni and Naturgy.

The LNG plant is owned by the Spanish Egyptian Gas Company (SEGAS), which is 40% owned by Eni through Union Fenosa Gas (50% Eni and 50% Naturgy).

The plant, which has an annual capacity of 7.56 billion cubic metres, has been idle since November 2012.

Union Fenosa Gas in the LNG plant (80 percent) will be transferred 50 percent to Eni and 30 percent to EGAS. The resulting shareholding of SEGAS will therefore be Eni 50 percent, EGAS 40 percent, and EGPC 10 percent.