Continental Focus, International Reach

UFG in Talks for Cash in LNG Restart

Sunday, February 24, 2019

Union Fenosa Gas (UFG) in is ongoing talks with the Egyptian government for more than $2 billion to restart its LNG plant at Damietta on the Mediterranean coast.

The firm had said in Q4 2018 that it was “in conversations with Egypt to restart the plant as soon as possible.”

“Progress has been made but the guarantees offered are not sufficient to reach the comprehensive agreement required to bring the dispute to its end,” UFG said in a statement on Monday, adding talks were ongoing.

The Damietta plant in northern Egypt is 80% owned by UFG, a joint venture between Spain’s Gas Natural and Italy’s ENI , with the remaining 20% split evenly between the state-owned Egyptian Natural Gas Holding Company and Egyptian General Petroleum Corporation.