Deal to Restart Damietta Plant Collapses

The deal signed by Eni, the Egyptian Natural Gas Holding Company (Egas), and Spain’s Naturgy to restart the mothballed 7.6bn m³/yr Damietta LNG export plant in Egypt has collapsed, Egas said in a statement April 25.

The agreement, which was signed in February this year, fell through because of the uncertainties created in the market by Covid-19 outbreak, Egas said.

Egas, however, said that it was ready to renegotiate the deal after taking some conditions into consideration. Damietta LNG, which was turned off in 2012 as its gas was needed at home, is operated by Union Fenosa Gas, a 50-50 joint venture between Italy’s Eni and Naturgy.

In its own statement, Naturgy also noted "its openness to reach agreements with all the parties which may finally amicably resolve the disputes affected Union Fenosa Gas."