The Egyptian Natural Gas Holding Company (EGAS) has reportedly won the case against the Damietta LNG plant at the International Court of Arbitration in Paris.
Reuters, citing the Egyptian ministry of petroleum, reported the court ruled that EGAS does not have to pay a US$270 million fine due to gas cuts at the Damietta LNG facility.
The complaint was filed in 2013 with the International Chamber of Commerce, claiming EGAS failed to comply with the agreement by halting gas supplies to the facility in 2012 and not making payments.
The plant sought $270 million in fines plus interest for the contracted liquefied natural gas capacity.
EGAS reduced the amount of gas it supplied to the facility to 400 million cubic feet per day, from the contracted 700 million cubic feet per day in 2010. Supplies stopped completely in 2012. The liquefaction train has an annual processing capacity of approximately 7.6 bcm.
Damietta LNG plant is owned by Segas, a company in which Union Fenosa Gas, a joint venture by Gas Natural Fenosa of Spain and Italy’s Eni, owns an 80 percent stake. The remaining 20 percent is split between EGAS and the other state-owned company Egyptian General Petroleum Corporation (EGPC).
EGAS has not responded to an e-mail by LNG World News seeking confirmation of the court’s ruling by the time this article was published.
LNG World News Staff