The 6.75 bcm/year (5 Mt/year) Damietta gas liquefaction plant in northern Egypt has restarted operations, producing and lifting its first LNG cargo since late 2012. The LNG plant was commissioned in 2005 but had been idle since November 2012 due to a lack of gas.
In December 2020, the government of Egypt, the Egyptian General Petroleum Corporation (EGPC), and the Egyptian Natural Gas Holding Company (EGAS) reached an agreement with the Italian and Spanish gas groups Eni and Naturgy to restart the LNG plant. As part of the agreement, Union Fenosa Gas (UFG, a 50:50 joint venture between Eni and Naturgy) has been dissolved and its 80% stake in Damietta LNG split between Eni (50%) and EGAS (30%). Consequently, the share of Eni in Damietta LNG rose from 40% to 50%, that of EGAS from 10% to 40% and that of EGPC will remain stable at 10%. Eni ensures the supply in natural gas to the plant, having obtained liquefaction rights of 3.78 bcm/year (2.8 Mt/year).
Egypt is seeking to become an energy hub in the eastern Mediterranean. The discovery of the giant Zohr gas field by Eni in August 2015 (estimated gas reserves of 850 bcm) and its start in December 2017 contributed to relaunch domestic gas production that had been declining since 2009 and revived the interest in Egypt's energy resources.
Interested in LNG Databases?
World LNG Database offers a complete set of data on LNG markets. The service provides detailed information on existing and planned liquefaction and regasification plants. It also includes LNG shipping around the world, LNG contracts, time series on regasification and liquefaction capacities, LNG flows and LNG prices for all players in the market.