Damietta LNG plant might reopen upon new talks

Damietta LNG plant has been inactive since 2012, yet its resumption “would provide additional export optionality for Egypt, which currently has a surplus of gas,” S&P Global noted.

Eni spokesman added, "The parties have resumed negotiations to try and set the framework of a possible new agreement to resolve all existing legal disputes and to restart the plant.”

Meanwhile, S&P cited an industry source saying Egypt was interested in fast tracking the talks.

Damietta LNG is operated by UFG, a 50-50 joint venture between Italy’s Eni and Spain's Naturgy.

The two European companies reportedly reached an agreement with Egypt last February to resolve several disputes over the Damietta LNG facility.

Last year, the Arab country registered an annual rise of 2.6% in its LNG exports.