Egyptian Plan to Supply Europe's LNG Gets Boost as Plant Reopens - BLOOMBERG

February 17, 2021, 1:10 PM GMT+2
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

Egypt is close to restarting its second liquefied natural gas plant after an eight-year hiatus, as the North African nation seeks to become one of Europe’s main suppliers of the fuel.

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.

Egypt to Reopen LNG Plant In Push to Be Major European Supplier - BLOOMBERG

January 27, 2021, 11:34 AM GMT+2
Salma El Wardany

• LNG capacity will be 12.5 million tons a year, says minister
• Nation looking to become a major supplier of LNG to Europe

Egypt is set to boost exports of liquefied natural gas by restarting one of its two production plants.

The Damietta facility, which has been idled for eight years, will reopen by the end of February, Oil Minister Tarek El-Molla said in an interview Wednesday with Dubai-based consultancy Gulf Intelligence. It will process about 4.5 million tons of LNG a year and raise the nation’s capacity to 12.5 million tons, he said.

The return of Damietta and the country’s other plant -- Idku, whose exports have picked up after dropping last year amid the coronavirus pandemic -- will mark a revival of Egypt’s LNG push.

While the Arab nation is a relative minnow -- accounting for about 1% of global LNG supplies in 2019 -- it will become one of the top 10 exporters if it reaches full capacity, according to data compiled by Bloomberg.

Eni strikes deals to reopen Egypt's Damietta LNG plant - REUTERS

December 1, 2020

Stephen Jewkes

MILAN (Reuters) - Italian energy group Eni has struck deals with Spanish gas firm Naturgy and Egyptian partners to resolve disputes over a shuttered gas plant it part owns in northern Egypt.

Eni said in a statement on Tuesday that the new agreements would pave the way for the liquefied natural gas (LNG) plant in the port city of Damietta to restart operations by the first quarter of next year.

An earlier deal hammered out between Eni, Naturgy and the Egyptian government over the plant fell through in April when a series of conditions were not met.

The new deal, which still needs the green light from European Union authorities as well as other conditions to be met, will allow Eni to increase its LNG portfolio and strengthen its gas foothold in the Eastern Mediterranean.

Breakdown in Naturgy, Eni and EGPC Damietta dispute resolution - ENTERPRISE

Sunday, 26 April 2020

DISPUTE WATCH- The resolution of a long-simmering dispute over a shuttered Damietta LNG plant has fallen apart despite an agreement reached last month, according to a cabinet statement. Parties to the dispute include Spanish gas firm Naturgy Energy Group, Italy’s Eni, and the Egyptian government.

Why does this matter? First, the dispute was closely followed by investors in Egypt’s energy sector, though that concern was largely swept away as the Sisi administration reached a settlement with all parties. More importantly, the Damietta plant is a key part of Egypt’s strategy to grow its natural gas exports as it emerges as the Eastern Mediterranean’s premier energy hub. The plant has been closed since 2012, when supply of gas was shut off amid disruptions in the wake of the political events of the previous year. Its reopening would have expanded Egypt’s ability to export natural gas to European markets.

Eni to restart Egypt’s Damietta LNG plant operations - OIL REVIEW MIDDLE EAST

Sunday, 01 March 2020 04:30

Supermajor Eni has announced that Egypt’s Damietta LNG plant is expected to resume operations by June following a series of agreements with its partners in Egypt

The liquefaction plant’s owner is the company SEGAS, which is 40 per cent owned by Eni through Union Fenosa Gas (50 per cent Eni and 50 per cent Naturgy). The plant has a capacity of 7.56 bcm per year, but has been idle since November 2012.

The agreements provide for the amicable resolution of the pending disputes of Union Fenosa Gas and SEGAS with EGAS and ARE, and the subsequent corporate restructuring of Union Fenosa Gas, whose assets will be divided between the shareholders Eni and Naturgy.

Egypt reaches agreement with Eni, Naturgy over Damietta LNG plant - AHRAM ONLINE / REUTERS

Thursday 27 Feb 2020

Italy’s Eni and Spain’s Naturgy have reached an agreement with Egypt to resolve a series of disputes over the Damietta gas liquefaction plant in northern Egypt, paving the way for the facility to restart by June, the Egyptian Ministry of Petroleum and Mineral ressoruces and the companies said on Thursday.

The agreement will end Naturgy’s business interests in Egypt and dissolve a joint venture between Naturgy and Eni, while Eni and state-owned Egyptian firms will increase their holdings in the Damietta plant.

The facility, which has a capacity of 7.56 billion cubic meters per year, has been idle since the end of 2012 when a popular uprising hit gas supplies in Egypt and the government was forced to import gas to meet domestic demand.

Is Egypt’s Energy Hub Dream Falling Apart? - OIL PRICE MAGAZINE

Feb 01, 2020, 12:00 PM CST

Cyril Widdershoven

Since the end of the 1990s Egypt has dreamt of becoming an East Mediterranean gas and energy hub.

The discoveries offshore in the Nile Delta at the end of the 20st Century, that kickstarted the LNG boom sparked hope, but regional and internal conflicts which led to the removal of president Husni Mubarak and the rule of the Muslim Brotherhood have significantly slowed down the country’s energy industry.

However, new discoveries made in the last couple of years, combined with strong results offshore Cyprus, Israel and possibly even the coming years in Lebanon have brought new hope. The so-called East Med Gas Forum, in which most littoral states are participating is seen as one of the main drivers of new energy developments. Led by Egypt-Israel and the Greece-Cyprus quartet, a new start was made to reshape the region’s energy market, with as crown jewel, Egypt’s LNG liquefaction capacity in Idku and Damietta. The combined reserves of the participants, especially Egypt’s elephant-sized fields Zohr and Noor, combined with Israel’s offshore wealth, could supply the European market. The EU and even the U.S. promote the so-called East Med Offshore Gas Pipeline project connecting the East Mediterranean with the Balkans and possibly Italy. The region is optimistic and strategies are being implemented at a remarkable speed. Even with Turkish military and political obstruction constraining or even threatening some of the projects, progress is made.

ENERGY: Cyprus receives intense international interest for gas supply tender - FINANCIAL MIRROR

13 September, 2019

The first phase of Cyprus Gas Company’s (DEFA) tender process for the supply of liquefied natural gas (LNG) has triggered considerable interest from major international players such as Shell, BP, Eni and Total.

According to DEFA, 25 suppliers, among the most dominant in the global LNG market, are seeking to supply gas to Cyprus and have submitted the prerequisites to qualify for the next stages of bidding and negotiation.

“The intense market competition for LNG supplies confirms that the strategy to acquire an FSRU was a decision toward the right direction,” a DEFA statement said.

Bidders/suppliers participating in the next round of bidding and negotiating are; Gunvor International B.V. Amsterdam, Naturgy LNG Marketing, Centrica LNG, Endesa Energia, Cheniere Marketing International LLP, Equinor ASA, Novatek Gas & Power Asia Pte, Shell International Trading Middle East, Enel Global Trading, Eni Trading & Shipping, Total Gas & Power Asia Private, Osaka Gas Kabushiki Gaisha, Powerglobe LLC, Repsol LNG Holding, Petronas LNG, BP Gas Marketing, Vitol, B.B. Energy (ASIA), Mytilineos, Uniper Global Commodities SE, Marubeni Corporation, SONATRACH and Public Gas Corporation (DEPA), Eni (Gas & LNG Marketing and Power), Glencore Energy UK and Mitsui & Co.

Egypt in talks with UGS to drop USD 2 bn arbitration claim over Damietta liquefaction plant - ENTERPRISE

Sunday, 13 January 2019

Egypt is in talks with Spanish-Italian JV Union Fenosa Gas (UGS) in a bid to have the European outfit drop its arbitration claim over gas supply interruptions at the Damietta liquefaction plant, an industry source tells the domestic press. The World Bank’s International Centre for Settlement of Investment Disputes ordered in September that Egypt pay USD 2 bn to UGS in the case, which UGS filed after the state cut off flows to its Damietta liquefaction plant. UGS owns 80% of the facility, while state-owned EGPC and EGAS together own the remaining 20%. According to the sources, the Oil Ministry is looking to hammer out an agreement that would see Egypt gradually relaunch operations at the Damietta facility and compensate UGS for its losses through EGAS’ profits from the facility’s operations. Naturgy and Eni are in “advanced talks” over the relaunch of operations, Eni CFO Massimo Mondazzi said back in October.

Eni flags likelihood of buyback next year as profits soar - REUTERS

OCTOBER 26, 2018 / 9:20 AM
Stephen Jewkes

MILAN (Reuters) - Italian oil major Eni (ENI.MI) flagged on Friday the likelihood of a share buyback next year after cash flow in the third quarter jumped and profits rose six-fold to beat expectations.

In a conference call with analysts, finance chief Massimo Mondazzi said a buyback was a priority, providing market conditions remained stable.

Over the last year the world’s top oil and gas companies have come under growing pressure to return more cash to shareholders as profits and oil prices get back on track after a three-year crunch.

“The trajectory is positive ... our aspiration is for a progressive dividend with a buyback, on condition our leverage stays below 20 percent,” Mondazzi said.

Gov’t hints at willingness to settle on Union Fenosa arbitration ruling - ENTERPRISE

Wednesday, 5 September 2018

Gov’t hints at willingness to settle on Union Fenosa arbitration ruling: It is the general policy of the government, and the Oil Ministry specifically, to seek a settlement in international arbitration cases, an Oil Ministry source told Al Mal. 

His statements are the first we’ve heard since news broke that the World Bank’s International Centre for Settlement of Investment Disputes ordered Egypt to pay USD 2 bn in settlements yesterday to Spanish-Italian JV Union Fenosa Gas (UGS) for the government cutting off supplies to UGS’ Damietta liquefaction plant. 

The source noted that the ministry is carefully studying the ruling before issuing an official statement on the matter, but added that the ministry was intending to resupply the plant and other liquefaction plants as its regional energy hub strategy gains steam. Supplies of natural gas will be restored by 2019, the source noted.

Egypt to pay Spanish-Italian JV $2bn in natural gas dispute - FINANCIAL TIMES

3 September 2018
Myles McCormick and David Sheppard

Ruling by World Bank panel poised to accelerate resumption of country’s LNG exports
A joint venture between Spain’s Naturgy and Italy’s Eni has been awarded a $2bn settlement from Egypt over gas supplies by a World Bank arbitration body, in a move that could accelerate the resumption of the country’s liquefied natural gas exports.

The ruling by the International Centre for Settlement of Investment Disputes comes after Egypt stopped supplying gas to Unión Fenosa Gas joint venture’s Damietta LNG plant as the country faced internal energy shortages in the wake of the political turmoil unleashed by the Arab Spring.

Unión Fenosa Gas took its case to the ICSID in 2014. The arbitration body on Monday found that in stopping the gas supply Egypt had failed to grant Unión Fenosa Gas “fair and equitable treatment”, contravening the country’s bilateral investment protection treaty with Spain, Naturgy said in a statement.

The $2bn is likely to be paid in the form of renewed gas supplies to Damietta rather than in cash, according to people familiar with the matter.

Naturgy, formerly known as Gas Natural Fenosa, said the award would allow it to reach a “comprehensive agreement” with Egypt to resume gas supplies to the plant, which were halted four years ago.