Salma El Wardany and Anna Shiryaevskaya
- Trader expected to load shipment at Damietta terminal Feb. 21
- Cargo is first since 2012 for Egypt’s second LNG facility
Vitol Group, the world’s largest independent oil trader, is expected to load a cargo at the Damietta port in northern Egypt, according to people with direct knowledge of the situation. It will be the first shipment from the facility since 2012.
The Damietta plant’s repeatedly delayed return will mark a revival of the Egyptian exports of the super-chilled fuel, which sputtered amid a dispute over gas supplies to the terminal. While the country only accounted for about 1% of global supply in 2019, the re-opening of the LNG terminal helps its plan to become an export hub on Europe’s doorstep.
The Vivit Americas LNG tanker is expected to arrive at the plant on Feb. 21, according to the people, though that destination could change. Vitol declined to comment.
Damietta, which can process 5 million tons of LNG a year, was idled in November 2012 after Egypt stopped supplying gas to the facility. Idku is already stepping up exports after the coronavirus pandemic and lower prices forced it to suspend shipments around the middle of last year.
The return of Damietta marks another landmark in Egypt’s LNG push. The country regained self-sufficiency in gas with the help of major discoveries including the giant Zohr field. That followed years of sagging domestic production that forced it to halt most LNG exports in 2014.
The restart follows the resolution of a long-standing dispute over supplies between the government and Union Fenosa Gas, the 50-50 joint venture between Spain’s Naturgy Energy Group SA and Rome-based Eni SpA. Under the agreement, the plant is evenly split between Eni and the government.
Naturgy, which is turning its focus to renewables, will exit UFG and its Egyptian operations. Eni, like other majors, is looking to decarbonize and sees gas as a key part of the transition. The restart will help it expand its LNG portfolio, in particular in Egypt, where the company is the main gas producer.
