Egypt, Sudan to boost cooperation in electrical connectivity, infrastructure, health sectors    Belarus' Lukashenko: air assault brigade will move to Belarus' Western border    US says no bailout for Lebanon, calls for change    High Expectations on the New WTO Leadership!    Tennis: Serena Williams loses to woman ranked 116th; Coco Gauff wins    Egypt's parliament to hold last session before summer recess Tuesday    Arsenal head of football Sanllehi leaves club    Pope calls for dialogue between Egypt, Ethiopia and Sudan over Nile dam    Four injured in building collapse in Downtown Cairo    Pompeo inks deal for US troop move from Germany to Poland    'Historic humiliation': Spanish media flay Barcelona after Bayern debacle    Thousands protest against Moon as S.Korea capital scrambles curb virus resurgence    Russia starts production of COVID-19 vaccine: Interfax    EBRD provides $200mn for Egypt's trade, private business amid coronavirus    Egypt sends shipment of 14 tonnes of flour to Lebanon    Egypt records 129 new coronavirus cases, 26 deaths on Wednesday    UK enters recession after GDP dived by a record 20.4% in Q2    New Zealand locks down largest city after cases end 102-day run    Egypt's property developer SODIC profits drop 80% in H1    Egypt reopens Rafah border crossing for first time since April    Egypt's senate elections 2020 trending on social media in few days    168 new coronavirus cases, 24 deaths recorded on Tuesday    Egypt discusses Amazon expansion plans in the local market    French publisher's jarring memoir to be released in English    Breaking down barriers    The last piece of gold    Mohamed Mandour, guru of modern pottery    Lebanese demand change after government quits over Beirut explosion    Trump says ‘great' bond with China's counterpart changed after COVID-19    President Abdel Fatah al-Sisi votes in Senate Elections 2020    Netflix Egypt released its teaser images of Arabic original series, Ma Waraa Al Tabiaa    African Champions League final will be played on Oct. 16-17, CAF says    Egypt invites Tesla's founder to visit Giza Pyramids after controversial tweets    No room to delay Egyptian Premier League games – EFA's board member    Egypt Cup games to resume after Premier League finishes: EFA    The Facebook Preacher's Search for Fame, and Egypt's Economy    Egypt's efforts in Libya to activate free will of Libyan people: Al-Sisi    Egypt calls on UNSC to address oil spill risks off Yemen coast    Egypt economically strong in face of COVID-19, reforms ongoing: International Cooperation Minister    Arafa Holding reports $144,000 COVID-19-related losses in April    Hyksos campaigns were internal takeover, not foreign invaders: study    COVID-19 affects Egypt sporting clubs    COVID-19 will soon turn to seasonal like swine flu: Presidential Health Advisor    ‘Egypt's Support' coalition convenes to discuss its Senate election list    Robbery attempt leads to discovery of Ptolemaic monuments in Qena    Flouting international guidance, Ethiopia unilaterally starts filling its Nile dam    Google ‘translate' ancient Egyptian hieroglyphs    Zaha speaks out after online racial abuse    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.





Damietta Liquefaction Plant to export 550m scf of gas/day in April after six-year suspension
Agreement on international settlement in favour of UFG against Egypt for $1bn
Published in Daily News Egypt on 16 - 02 - 2019

The Egyptian government has agreed with the foreign partners in the Damietta Liquefaction Plant to export about 550m cubic feet (scf) of gas daily to international markets by April after a suspension which lasted for six years.
A source at the petroleum sector told Daily News Egypt that a settlement agreement was reached with the Spanish Union Fenosa Gas (UFG) regarding the invalidity of a judicial verdict issued by the International Centre for the Settlement of Investment Disputes (ICSID) against Egypt's Natural Gas Holding Company (EGAS), as the plant of Damietta gradually goes back to operation.
He explained that the ministry of petroleum has agreed with foreign partners in the Damietta Liquefaction Plant to compensate the company for the period during which its operation was suspended with amounts of money deducted from EGAS' share in the revenues of re-operating the plant, in exchange for waiving the international verdict issued against Egypt.
Noteworthy, Eni is establishing a land pipeline from the Zohr gas treatment plant all the way to the Damietta plant in order to export the amount of the gas produced to the European market after obtaining the approval of the ministry of petroleum.
The source added that the ministry has approved allowing the plant to export some of the amounts of the locally-produced natural gas until the gas arrives from the fields of Cyprus and Israel located in the Mediterranean, which would achieve economic revenues in Egypt and end arbitration disputes.
The government has reached a deal with the foreign partners at the Damietta Liquefaction Plant on the prices of gas and the charges of using the national gas network, in return of gradually re-operating the plant and exporting the locally produced natural gas.
Recently, a ICSID subsidiary has issued a penalty against EGAS to compensate Spain's UFG with the sum of $2bn.
The Ministry of Petroleum said in a previous official statement that the dispute erupted when UFG filed an arbitration lawsuit against Egypt, demanding a compensation of $4b.
The foreign partners of the Damietta plant have accused EGAS of refraining from supplying the gas quantities agreed upon by the Egyptian General Petroleum Corporation (EGPC), EGAS, and UFG in 2000, which obligates EGAS to provide Damietta plant with a total of 750m scf/d, starting from the date of its operation in January 2005.
Damietta's ownership is distributed between partners through 26% for Italy's ENI, 26% for UFG and SEA Gas, while 48% is owned by the Egyptian government.


Clic here to read the story from its source.