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Tuesday, 3 March 2020

Eni to export gas from Damietta LNG plant

Eni to export gas from Damietta LNG plant this year: Eni is looking to begin exporting natural gas from the Damietta LNG plant this year, the local press reports, citing an unnamed source at the Oil Ministry. The company is permitted to export production from its Zohr natural gas field after clearing with the Oil MInistry that it is not required for domestic consumption, the source said.

The Damietta plant is now expected to open in June following a seven-year hiatus: The Egyptian government last week reached a settlement with the facility’s majority shareholder Union Fenosa Gas (UFG), putting an end to a five-year legal dispute that arose after Egypt cut gas supplies in 2012. The agreement will see Spain’s Naturgy exit UFG — a joint venture with Eni that owned 80% of the facility — handing the Italian company an increased 50% stake and allowing it to begin exporting natural gas.

The Zohr field is on track to reach maximum production capacity this year after Eni begins operations at the field’s 15th well this month. Production at the field currently stands at 2.7 bcf/d after four wells in the field’s southern region were connected last November.

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