Major steps on natural gas

  • Date: 03-Mar-2021
  • Source: Ahram
  • Sector:Oil & Gas
  • Country:Egypt
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Major steps on natural gas

After an eight-year hiatus, the Damietta liquefied natural gas (LNG) plant has re-opened, and two cargoes were shipped last week by the Italian energy company Eni, the main shareholder in the facility.

According to Eni, the main gas-producer in Egypt, the shipping of the LNG cargo represents an important milestone in completing the agreement on the plant reached in December settling pending disputes that had led to its closure.

The plant came back online after settling legal disputes between its main shareholders that saw Eni ending a joint venture with Naturgy that held 80 per cent of the plant. Eni is now the only foreign owner of the plant with a 50 per cent stake and the rest split between the Egyptian Natural Gas Holding Company (EGAS) and the Egyptian General Petroleum Corporation (EGPC).

The Damietta LNG plant has a capacity of 7.56 billion cubic metres of gas per year, but it had been idle since November 2012 until it resumed operations in the first quarter of 2021.

Egypt depended heavily on gas imports in the past, especially in the years following the 25 January Revolution when companies were reluctant to produce gas in the country due to the