Eni and partners finalize Damietta LNG deal

Italian energy giant Eni said Wednesday it completed the deal signed in December with Egyptian partners and Naturgy to resolve disputes over the Damietta liquefaction plant.

The firm signed the agreement with the Egyptian General Petroleum Corporation (EGPC), the Egyptian Natural Gas Holding Company (EGAS), and the Spanish firm.

Following Naturgy’s departure, Eni owns 50 percent in SEGAS, the owner of the liquefaction plant, while EGAS owns 40 percent, and EGPC holds 10 percent.

The 5 mtpa plant located on the Mediterranean coast, about 60 km northwest of Port Said, has been idle since November 2012, but it shipped its first cargo some two weeks ago following the December announcement to restart the facility.

Eni said in the new statement the plant shipped its second cargo since the restart on March 4.

In addition, the plant is loading the third cargo which Eni would sell directly to its customers in Europe, it said.

The Damietta plant originally started production back in 2004 with the first cargo leaving in January 2005.

It consists of a single train, jetty, and two LNG storage tanks with a capacity of 300,000 cbm.

The facility stopped operations in 2012 due to declining domestic production, but new finds such as Eni’s giant Zohr field in the East Mediterranean allowed the partners to restart the plant.

Besides the Damietta LNG facility, Egypt also has the Shell-operated Egyptian LNG facilities, located at Idku.

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