Egypt wins ICC arbitration case
The Paris-based International Court of Arbitration has ruled that Egypt's state gas board EGAS will not have to pay a $270 million fine related to gas cuts at its foreign-owned liquefied natural gas (LNG) plant, the petroleum ministry said on Tuesday. EGAS is the Egytian Natural Gas Holding Company, a state owned company which is also responsible for issuing natural gas exploration licences in Egypt
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.
The plant is 80 percent-owned by Union Fenosa Gas (UFG), a joint venture between Spain's Gas Natural and Italy's Eni. The remaining 20 percent is split evenly between state-owned companies EGAS and EGPC.
EGAS had committed to supplying about 700 million cubic feet per day to Segas, but in 2010, the gas supply was reduced to 400 million cubic feet per day before being cut off completely in 2012.
Source: Egypt Independent