Back to the complete issue
Wednesday, 10 March 2021

Signed, sealed, delivered…

The eight-year Damietta LNG plant ownership dispute is now officially over after final settlement agreements were signed, the Oil Ministry said in a statement today. Some 40 agreements were signed to settle claims between the government, state-owned EGAS, plant operator Spanish Egyptian Gas Company (Segas), and Union Fenosa Gas (UGS), the JV between Naturgy and Eni, the statement said.

So who owns what now? Naturgy reached an agreement with Eni to exit UGS and redistribute ownership between EGAS and the EGPC, who will hold a combined 50%, while Eni holds the remaining 50%, the ministry said.

The plant already restarted production last month and loaded two trial shipments to China and Bangladesh. Oil Ministry spokesperson Hamdy Abdel Aziz previously told us that the final agreement to end the dispute and establish the new ownership structure marks the plant’s transition from last month’s trial run. The plant’s resumption is a key step towards our ambitions to become an energy hub and boost natgas exports to Europe.

Origins of the dispute: UGS filed a case in 2014 at the World Bank’s International Centre for Settlement of Investment Disputes over a disruption to gas supplies in 2012, and the arbitrator ordered Egypt to pay USD 2 bn in settlements to UGS in 2018.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.