Photo: Courtesy of KBR

Damietta LNG to load a test cargo in February

Egypt’s Damietta LNG plant will resume its operations on 14 February, S&P Global Platts reports.

Damietta LNG to load a test cargo mid February
Courtesy of KBR

Union Fenosa Gas and the Egyptian government, the stakeholders in the 5 million metric tonnes per annum Damietta LNG facility, reached a new deal in December 2020 to allow for the plant to restart in the first quarter of 2021.

Union Fenosa Gas is a joint venture between Italian energy group Eni and Spanish gas firm Naturgy.

The plant has been idle since 2012 and its restart is expected to provide additional export optionality for Egypt, S&P Global Platts Analytics reports. This will be the first step towards adding Damietta’s exports to the Shell-operated Idku plant.

The deal is aligned with a previous agreement reached in February 2020, which fell through in April due in part to the pandemic.

As part of the December agreement, Naturgy will be released from its annual gas procurement contract that was due to end in 2029. Eni will be taking over the contract for the purchase of gas for Damietta LNG and receiving corresponding liquefaction rights.

The restart of operations at Damietta LNG will result in Naturgy’s departure from Egypt and the end of its joint venture with Eni.

The plant is 50 per cent owned by Eni, 40 per cent by Egyptian Natural Gas Holding Company (EGAS) and 10 per cent by Egyptian General Petroleum Corporation (EGPC).