Damietta LNG gears up to load third cargo since restart

The Damietta LNG plant in Egypt is preparing to export its third cargo since resuming operations last month, according to Italy’s Eni, a shareholder in the facility.

In a statement dated March 10, Eni said the Damietta gas liquefaction plant had begun transferring the LNG to a tanker last week. It did not reveal the size of the cargo, but it reported that it intended to sell these volumes directly to customers in the European market.

The shipment “consolidates Eni's integrated development strategy by increasing the volumes and flexibility of its portfolio, in synergy with its upstream assets,” the statement said.

The company noted that Damietta LNG’s second load of LNG since the restart had set sail on March 4, just 10 days after the first, which left port on February 22.

Prior to the departure of the first cargo, the plant had been idle since November 2012. It resumed operations last month, in line with an agreement previously signed between Eni, the government of Egypt, Egyptian General Petroleum Corp. (EGPC), Egyptian Natural Gas Holding Co. (EGAS) and Naturgy (Spain).

According to Eni’s statement, the parties have now finalised that agreement, which was signed last December. The document allowed them to restart Damietta LNG and redistribute equity in SEGAS, the joint venture that owns the plant, as follows: 50% to Eni, 40% to EGAS and 10% to EGPC. It also effected the corporate restructuring of Union Fenosa Gas (Spain), ensuring that the company’s assets were split between Eni and Naturgy, and resolved all of SEGAS and Union Fenosa Gas’ outstanding disputes with EGAS and the Egyptian government.

The Italian company commented that the newly finalised agreement was in line with its plans to bolster its presence in the region. “Through this agreement, the company strengthens its presence in the East Mediterranean, a key region for the supply of natural gas, which is a fundamental resource for the energy transition, of which Egypt is the main producer in the area,” it said.

“The agreement comes at an important time when, thanks in part to the rapid entry into production of Eni’s recent natural gas discoveries, especially from the Zohr and Nooros fields, Egypt has regained full capacity to meet domestic gas demand and can allocate excess production for export through LNG facilities,” it added.