A nice present for Valentine’s Day
The first test shipment out of Damietta’s LNG plant will be sent out on 14 February as Italy’s Eni takes over the plant’s operations from Spain’s Naturgy under the terms of an agreement between the two companies and the Egyptian government, S&P Global reports. Under the new agreement, Eni will hold a 50% stake in the Spanish Egyptian Gas Company (SEGAS) — owner of the Damietta plant — while state owned EGAS will hold 40%, with the remaining 10% held by the Egyptian Gas and Petroleum company (EGPC). The test shipment will be the first step towards adding Damietta’s exports to the Shell-operated Idku plant — Egypt’s sole LNG exporter — and boosting Egypt’s ability to export gas to European markets.
Exports at the Idku plant are up: Seven cargoes have been shipped from the Idku plant since the start of 2021, compared to 6 cargoes in 1Q2020, according to data obtained by S&P from trade flow software cFlow. Exports had already begun picking up in 4Q2020 with 17 cargoes shipped to mostly China, India and Turkey. Exports from Idku were halted in March 2020 as global gas prices plunged — with only one tanker leaving the facility between March and July — though exports resumed last October.
IN OTHER ENERGY NEWS- ADES SAE has signed a six-month drilling agreement in the Gulf of Suez with an unnamed “top tier” client, with the option of extending the contract for another six-month period.