The Ministry of Petroleum has announced the cancellation of the agreement to restart Damietta gas liquefaction station, which was signed on February 27 between the Egyptian Holding Company for Natural Gases (EGAS), Italian energy giant Eni and Naturgy Spanish Company.
Naturgy was supposed to exit the station so that it would become 50 per cent owned by Eni, 40 per cent owned by the Egyptian Natural Gas Holding Company (EGAS) and 10 per cent would belong to the General Petroleum Corporation. Naturgy said the agreement was based on a number of conditions that had been unfulfilled, but it still welcomed an amicable solution to the conflict.
An informed source said that the first condition of the terms of the agreement was the reopening of the station, but this was not possible due to restrictions on movement and industry around the world due to the coronavirus epidemic. Naturgy added that it would resume its efforts to obtain compensation of $2 billion, which it was awarded in favour of a joint venture with Eni in 2018.
It’s reported that in January 2020, Union Fenosa Gas, the operator of the Damietta natural gas liquefaction station, pursued a $2 billion fine against (EGAS), after the decision by the Egyptian government to suspend the gas supply to the company’s station in Damietta in 2012 to meet the growing needs of the local market.