{"id":560428,"date":"2021-02-28T04:42:01","date_gmt":"2021-02-28T04:42:01","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/02\/28\/a-long-hot-summer\/"},"modified":"2021-02-28T04:42:01","modified_gmt":"2021-02-28T04:42:01","slug":"a-long-hot-summer","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/02\/28\/a-long-hot-summer\/","title":{"rendered":"A long, hot summer"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-02\"><\/a> <strong>Don\u2019t expect exports from the newly-reopened Damietta LNG plant to ramp up until <\/strong><strong>the end of the year<\/strong>, as increased local energy demand during the summer is likely to keep exports muted, traders and analysts tell <a href=\"https:\/\/www.spglobal.com\/platts\/en\/market-insights\/latest-news\/natural-gas\/022621-egypt-hails-damietta-lng-return-but-short-term-impact-likely-muted\">S&P Global Platts Analytics<\/a>. \"We expect the facility's exports to be limited until after Egyptian summer demand recedes, with material exports from Damietta not expected until Winter 2021,\u201d said Platts Analytics' managing analyst Samer Mosis in a view shared by market traders.<\/p>\n<p><strong>Damietta is key to our regional energy hub ambitions: <\/strong>The reopening of the Damietta plant <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/3613f080-5d75-4b85-af31-1b66fcda3204\">earlier this month<\/a> after eight years of being idled removes a major roadblock to Egypt\u2019s plans to export LNG to Europe, and will allow us to maximize the potential of Israeli natural gas imports and the arrival of Cypriot natural gas from the Aphrodite field in the coming years. LNG exports <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/61d78876-de6b-4cf9-a236-cb39e6b3c443\">fared terribly during covid-19<\/a>, with Egypt completing only two LNG shipments since the start of the pandemic \u2014 one in July and one in <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/9c0ac814-b962-4593-8678-a9c81beca39c\">October<\/a> \u2014 as global gas prices hit record lows.<\/p>\n<p><strong>Exports have picked up so far this year \u2014 but this isn\u2019t going to last:<\/strong> Egypt has exported 27 mn cbm of gas per day from Damietta and the Idku LNG plant so far in 2021, according to Platts Analytics data \u2014 more than double its export rates a year ago. But exports are set to decrease this summer, averaging around 16 mn cbm per day, with domestic gas production reaching 198 mn cbm per day by the end of the year, according to Mosis.<\/p>\n<p><strong>There\u2019s no sign of when the Damietta plant\u2019s next shipment might take place<\/strong>, with global trade flow softwares showing no tankers en route following the departure of <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/3613f080-5d75-4b85-af31-1b66fcda3204\">two natural gas tankers<\/a> from the port last week. Two Damietta cargoes scheduled for late February and early March have reportedly been canceled, sources told S&P. Damietta is running a series of trial shipments before formally resuming exports, with the next trial shipment likely heading to Europe, Oil Ministry spokesperson Hamdy Abdel Aziz <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/bf5c92c9-141c-4100-937b-20878feca8eb\">previously told Enterprise<\/a>.<\/p>\n<p><strong>And more investment is needed for our export plans to materialize:<\/strong> Though Egypt has potential to be the \u201ccenterpiece of any regional gas ambitions,\u201d we will continue to need foreign oil and gas investment to \u201cmaintain, let alone expand, domestic gas production and LNG exports,\u201d S&P\u2019s Mosis says. Egypt launched its <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/2c4454f8-c6d8-46dc-a04b-f1d3ab0b9291\">first gas exploration tender of 2021<\/a>, covering 24 blocs, earlier this month.<\/p>\n<p><strong>Egypt is taking other steps to boost its ambitions as a regional energy hub: <\/strong>In addition to its establishment of the <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/01a49990-c0a6-474a-9234-976ca6dc30c3\">East Med Gas Forum last year<\/a>, Egypt and Israel agreed last week to build a pipeline connecting Israel\u2019s offshore Leviathan gas field to Egypt\u2019s liquefaction plants to help Israel ramp up its exports to Europe. A planned natural gas pipeline connecting Egypt and Cyprus, which authorities were reportedly <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/22727ffe-7c02-481d-9cc5-8386ebe9dfbb\">in discussions over last year<\/a>, should also boost Egypt\u2019s supplies of LNG for liquefaction, and allow it to re-export to Europe. Hungarian Foreign Minister P\u00e9ter Szijj\u00e1rt\u00f3 also <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/3c90f54a-92ff-4999-9b68-d8c9b2cced14\">said last week<\/a> that Hungary would import natural gas through Egypt once connecting infrastructure in Greece and Bulgaria is complete.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Don\u2019t expect exports from the newly-reopened Damietta LNG plant to ramp up until the end of the year, as increased local energy demand during the summer is likely to keep exports muted, traders and analysts tell S&#038;P Global Platts Analytics. \"We expect the facility's exports to be limited until after Egyptian summer demand recedes, with [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":560429,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7207],"tags":[93,72,91],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-560428","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","tag-energy","tag-enterpriseam","tag-oil-and-gas","wpautop","entry"],"acf":{"mongo_id":"e0c5ce86-71e4-4b7e-a3e9-c7aa40b1221f","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2021\/2\/382.jpg","photo_position":"above","related_issue":[560423],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - 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This is the highest amount of LNG exported from Egypt since May 2013. Four cargoes were shipped during the month, including two\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/10\/479.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":601144,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/02\/20\/union-fenosa-denies-agreement-with-egypt-over-damietta-lng-plant\/","url_meta":{"origin":560428,"position":1},"title":"Union Fenosa denies agreement with Egypt over Damietta LNG plant","author":"enterpriseam admin","date":"20 February 2019","format":false,"excerpt":"DISPUTE WATCH- The Damietta LNG plant may not be reopening in April after all: Damietta LNG plant operator Union Fenosa Gas (UFG) poured cold water on reports this week that the facility will be reopened in April. An Oil Ministry source claimed this week that UFG, 50-50 owned by Union\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":570981,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/04\/26\/breakdown-in-naturgy-eni-and-egpc-damietta-dispute-resolution\/","url_meta":{"origin":560428,"position":2},"title":"Breakdown in Naturgy, Eni and EGPC Damietta dispute resolution","author":"enterpriseam admin","date":"26 April 2020","format":false,"excerpt":"DISPUTE WATCH- The resolution of a long-simmering dispute over a shuttered Damietta LNG plant has fallen apart despite an agreement reached last month, according to a cabinet statement. Parties to the dispute include Spanish gas firm Naturgy Energy Group, Italy\u2019s Eni, and the Egyptian government. Why does this matter? First,\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/4\/212.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":624269,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/09\/04\/arbitrator-orders-egypt-to-pay-usd-2-bn-to-union-fenosa-gas-over-natural-gas-supply-cut-to-damietta-plant\/","url_meta":{"origin":560428,"position":3},"title":"Arbitrator orders Egypt to pay USD 2 bn to Union Fenosa Gas over natural gas supply cut to Damietta plant","author":"enterpriseam admin","date":"4 September 2018","format":false,"excerpt":"Arbitrator orders Egypt to pay USD 2 bn in settlements to UGS over cut of natural gas supply to Damietta plant: The World Bank\u2019s International Centre for Settlement of Investment Disputes ordered Egypt to pay USD 2 bn in settlements yesterday to Spanish-Italian JV Union Fenosa Gas (UGS) over a\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":601041,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/02\/18\/damietta-liquefaction-plant-to-export-c-550-mn-cfd-of-natural-gas-by-april\/","url_meta":{"origin":560428,"position":4},"title":"Damietta liquefaction plant to export c.550 mn cfd of natural gas by April","author":"enterpriseam admin","date":"18 February 2019","format":false,"excerpt":"Damietta LNG plant to reopen in April after six-year hiatus: TheDamietta liquefaction plant will reopen in April and export around 550 mn cfd of natural gas following a six-year hiatus, an oil ministry source told the domestic press. The potential resumption of exports comes as plant operator Union Fenosa Gas\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":561042,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/03\/23\/damietta-lng-plant-ships-first-cargo-to-europe\/","url_meta":{"origin":560428,"position":5},"title":"Damietta LNG plant ships first cargo to Europe","author":"enterpriseam admin","date":"23 March 2021","format":false,"excerpt":"The first Europe-bound LNG shipment from the Damietta liquefaction plant arrived in Belgium on Sunday \u2014 almost a month after the facility restarted operations and sent out trial shipments of gas following an eight-year hiatus, according to S&P Global. The cargo, which made its way out of the Damietta Port\u2026","rel":"","context":"In &quot;Energy&quot;","block_context":{"text":"Energy","link":"https:\/\/enterpriseam.com\/egypt\/category\/industries\/energy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/560428","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=560428"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/560428\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/560423"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/560429"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=560428"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=560428"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=560428"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=560428"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=560428"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}