Egypt says ‘taking steps’ over $2 bln payment to Union Fenosa Gas

Egypt said on Wednesday it was “taking all necessary steps” over $2 billion the World Bank ordered it to pay to Italian-Spanish firm Union Fenosa Gas (UFG) because of a lack of gas supply to an Egyptian plant in which the company has a majority stake.

A statement from Egypt’s petroleum ministry for the first time acknowledged the decision by a World Bank arbitration body, but did not elaborate on what steps it was taking.

The World Bank body ordered Egypt to pay the money to Union Fenosa Gas (UFG), a joint venture between Spain’s Gas Natural and Italy’s Eni, the company said in a statement on Monday.

The Damietta liquefied natural gas (LNG) plant is 80 percent owned by UFG, with the remaining 20 percent split evenly between state-owned companies EGAS and EGPC.

Source: Reuters