The French International Court of Arbitration ruled Tuesday that Egyptian Natural Gas Holding Company (EGAS) not to pay a fine of US$270 million to gas cuts at its foreign-owned liquefied natural gas (LNG) plant.
According to Egyptian petroleum ministry, the Damietta LNG plant filed a complaint with the International Chamber of Commerce in 2013 alleging that its state partner had failed to comply with contracts by halting gas supplies in 2012 and not making payments.
The plant was demanding EGAS pay $270 million plus interest for contracted LNG capacity.
Damietta plant, which is owned by Union Fenosa Gas(UFG) by 80 percent, is a joint venture between Spain’s Gas Natural and Italy’s Eni while the remaining 20 percent is split equally between Egypt’s companies EGAS and EGPC.
EGAS had committed to supplying about 700 million cubic feet per day to Segas, but in 2010, the amount of gas supply to the company was reduced to 400 million cubic feet per day before being cut off completely in 2012.
