Eni SPA has signed agreements with Egypt, Egyptian General Petroleum Corp. (EGPC), Egyptian Natural Gas Holding Co. (EGAS), and the Spanish company Naturgy for first-quarter 2021 restart of the 7.56 billion cu m/year (bcmy) Damietta liquefaction plant in Egypt. The plant, idle since November 2012, is owned by Segas, which is 40% held by Eni through Union Fenosa Gas (50% Eni, 50% Naturgy).
Damietta’s return to service is pending authorization by European authorities and fulfilment of precedent conditions. Eni says the restart will strengthen its presence in the rapidly developing Eastern Mediterranean natural gas supply center.
Union Fenosa Gas’s participation in the Damietta plant (80%) will be transferred 50% to Eni and 30% to EGAS. The resulting shareholding in Segas will be Eni 50%, EGAS 40%, and EGPC 10%. Eni will also take over the contract for the purchase of natural gas for the plant and will receive corresponding liquefaction rights, increasing the volumes of LNG in its portfolio by 3.78 bcmy, which will be available on an FOB basis, with no destination restrictions.
Production at giant Zohr natural gas field offshore Egypt last year increased to 2.7 bcfd (OGJ Online, Aug. 21, 2019). Eni holds a 50% interest in Shorouk block encompassing the field and is a partner with EGPC in Petrobel, which executes the project on behalf of Petroshorouk.
Eni and BP PLC earlier this year began contemplating development options for a new gas discovery in the Great Nooros area in Abu Madi West development lease in the Eastern Mediterranean, offshore Egypt (OGJ Online, Sept. 16, 2020). Preliminary evaluation of well results estimated more than 4 tcf of gas in place in the Great Nooros area, considering extension of the reservoir towards the north, the dynamic behavior of the field, and recent area discoveries.
Eni, through its subsidiary Italian Egyptian Oil Co. (IEOC), holds a 75% stake in Abu Madi West development lease. BP holds the remaining 25% stake. Petrobel, a 50-50 joint venture of IEOC and EGPC, is operator.
Egypt has regained its full capacity to meet domestic gas demand and can allocate surplus production for export through its LNG plants, Eni said.