Eni to reignite Egypt’s Damietta LNG

On 27th February 2020, Eni announced it will restart the 5 mmtpa SEGAS LNG plant located in Damietta, Egypt. The plant has been closed since 2012, when Egypt experienced a gas shortage. Giant gas discoveries in the East Mediterranean have since reversed this situation, leading to production caps in late 2019 and the need to find new outlets for Egyptian gas. Eni will also take over Naturgy’s stake in the facilities. In this inform, we look at: • How the arbitration case involving SEGAS LNG was resolved • The new plant’s commercial structure • The impact on Egypt’s gas production • The rationale for Eni and Naturgy • The view from the LNG market