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Wednesday, 9 December 2020

Damietta LNG exports could be ready by 1Q2021

We could be seeing our first LNG exports out of Damietta by 1Q2021, soon after Eni and its state-owned partners the Egyptian Natural Gas Holding Company (EGAS) and the Egyptian General Petroleum Company (EGPC) reopen the long-dormant terminal, Youm7 reports, citing unnamed officials in the oil industry. An agreement reached last week between the Italian energy giant and its Union Fenosa Gas (UFG) partner Naturgy finally brought an end to an eight-year dispute with the Egyptian government, and is expected to pave the way for the facility to restart operations during the next quarter.

Refresher: What was agreed last week? Naturgy has agreed to exit UFG — its 50/50 JV with Eni that owns 80% of the facility — in return for a USD 600 mn payment and most of UFG’s assets outside of Egypt. Its share of ownership will then be distributed between Eni, EGAS and EGPC. Once the plant begins operations, Naturgy will leave Egypt and UFG will be closed.

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