September 11, 2018 / 8:25 AM / 8 months ago

Union Fenosa 'in conversations' to restart Egypt gas plant -statement

CAIRO, Sept 11 (Reuters) - Union Fenosa Gas (UFG) is “in conversations” to restart a liquefied natural gas (LNG) plant in Egypt which has been idle for several years due to a lack of gas supply, the Italian-Spanish firm said.

“UFG is in conversations with Egypt to restart the plant as soon as possible,” the company said on Monday in an emailed response to Reuters over money the World Bank has ordered Egypt to pay the company. It did not elaborate.

Egypt said on Wednesday it was “taking all necessary steps,” without elaborating, over $2 billion which a World Bank arbitration body ordered it to pay to UFG because of a lack of gas supply to the Damietta plant, in which the company has a majority stake.

UFG said in 2013 Egypt was restricting supplies to the plant as it diverted export supplies to its domestic market. The plant has been idle since.

The Damietta plant in northern Egypt is 80 percent owned by UFG, a joint venture between Spain’s Gas Natural and Italy’s Eni, with the remaining 20 percent split evenly between state-owned companies EGAS and EGPC. (Reporting by Ehab Farouk, writing by John Davison; editing by Jason Neely)

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