Damietta LNG restart back on the cards
A restart of the Damietta LNG plant is once again on the cards following an agreement between Eni, Naturgy and two state-owned Egyptian companies. The plant has been idle since November 2012. The deal aims to restart Damietta LNG by the first quarter of 2021. The deal is similar to the one reached in February, which fell apart in April as a result of COVID-19 and various conditions not being met.
Damietta LNG is owned by SEGAS. Eni and Naturgy both own 50% stakes in Union Fenosa Gas (UFG), which owns an 80% stake in SEGAS. The deal will see UFG’s stake divided between Eni and Egyptian Natural Gas Holding (EGAS). As a result, Eni will have a 50% stake in the plant, while EGAS’ stake will increase to 40%. Egyptian General Petroleum Corp. (EGPC) holds the remaining 10%.
Eni will take over the contract for purchasing natural gas for Damietta LNG and will hold the corresponding liquefaction rights. The plant has total capacity of 7.56 billion cubic metres per year, and the deal increases Eni’s LNG volumes by 3.78 bcm.
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