Union Fenosa Gas gets $2 billion over Egypt LNG dispute
Spanish LNG operator Naturgy, previously Gas Natural Fenosa, said that Union Fenosa Gas has won an award from the International Center for Settlement of International Disputes in regard to a gas supply dispute in Egypt.
Union Fenosa Gas is a 50/50 joint venture between Naturgy and Italy’s Eni.
The company, through its 80 percent holding in its subsidiary SEGAS, operates Egypt’s liquefaction plant in Damietta. The remaining 20 percent belongs to the Egyptian state companies EGPC and EGAS.
To remind, Union Fenosa Gas launched a claim in 2014 against EGAS over a lack of gas supply to the Damietta LNG export plant
Naturgy said in a statement on Monday that ICSDI granted $2.01 billion after taxes and before interest to Union Fenosa Gas claiming that Egypt “failed to grant Union Fenosa fair and equitable treatment.”
Naturgy added it was confident that the issuance of this award would allow it to reach an agreement that would re-establish the value of this investment through a commercial agreement, resuming the gas supplies to the liquefaction plant.
LNG World News Staff