December 3, 2020

Eni reaches agreement for Damietta LNG plant


ArabFinance: Italian oil company Eni reached an agreement with its partners to restart the liquefied natural gas (LNG) plant in Egypt’s Damietta by the first quarter of 2021, according to a December 1st press release.

The deal also covers “the amicable settlement of disputes related to Union Fenosa Gas,” Eni noted.

The agreements included the subsequent corporate restructuring of Union Fenosa Gas, which assets will be shared between the partners Eni and Spanish company Naturgy, the Italian energy firm added.

The participation of Union Fenosa Gas in the plant will be transferred as 50% to Eni and 30% to the Egyptian Natural Gas Holding Company, the statement added.

Damietta LNG facility has a capacity of 7.56 billion cubic meters per year, “but has been idle since November 2012,” according to Eni.

“Eni will take over the commercial activities of natural gas in Spain, strengthening its presence in the European gas market,” the press release said.

Last October, S&P Global reported that Damietta plant would reopen based on the results of new negotiations between Egypt and Union Fenosa Gas.

In August, Egypt’s President Abdel Fattah el Sisi urged cooperation with Eni.

arabfinance


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