{"id":639661,"date":"2024-08-13T00:00:00","date_gmt":"2024-08-13T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/08\/13\/govt-is-in-talks-with-italys-eni-over-a-new-usd-150-mn-fixed-regasification-unit\/"},"modified":"2024-08-13T00:00:00","modified_gmt":"2024-08-13T00:00:00","slug":"govt-is-in-talks-with-italys-eni-over-a-new-usd-150-mn-fixed-regasification-unit","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/08\/13\/govt-is-in-talks-with-italys-eni-over-a-new-usd-150-mn-fixed-regasification-unit\/","title":{"rendered":"Gov\u2019t is in talks with Italy\u2019s Eni over a new USD 150 mn fixed regasification unit"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <strong>Eni to set up a fixed regasification unit in Damietta:<\/strong> The Madbouly government is in talks with Italian energy giant Eni to build a regasification unit, with investments of about USD 150 mn, in Damietta, an unnamed government official told Enterprise.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong style=\"background-color: transparent;\">Project profile:<\/strong><span style=\"background-color: transparent;\"> The unit will be built on land adjacent to the Damietta LNG facility \u2014 operated by a joint venture between Eni and the Egyptian Natural Gas Holding Company (EGAS) \u2014 to receive LNG shipments and regasify them, <\/span><a target=\"_blank\" href=\"https:\/\/www.asharqbusiness.com\/companies\/50937\/%D9%85%D8%B5%D8%B1-%D8%AA%D8%AA%D9%81%D9%82-%D9%85%D8%B9-%D8%A5%D9%8A%D9%86%D9%8A-%D8%B9%D9%84%D9%89-%D8%AA%D8%B4%D9%8A%D9%8A%D8%AF-%D9%88%D8%AD%D8%AF%D8%A9-%D8%AA%D8%BA%D9%88%D9%8A%D8%B2-%D8%AB%D8%A7%D8%A8%D8%AA%D8%A9-%D9%81%D9%8A-%D8%AF%D9%85%D9%8A%D8%A7%D8%B7\/\" rel=\"noopener\">Asharq Business<\/a><span style=\"background-color: transparent;\"> reports. The main objective is to bridge the gap between higher-than-expected local consumption, which was <\/span><a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/8883e2e1-8006-4fd6-be3c-58d871338ead\/madbouly-addresses-power-cuts,-renewables-goals,-meds-crisis\" rel=\"noopener\">up 12% y-o-y in July<\/a><span style=\"background-color: transparent;\">, and dwindling domestic gas production.<\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Where things stand:<\/strong> EGAS has tapped an international consultant to conduct the required studies ahead of building the unit and to explore the possibility of utilizing the Damietta LNG\u2019s storage facilities, which can accommodate over 160k cubic meters worth of LNG, Asharq Business reports. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Remember: <\/strong>Egypt currently has access to two regasification units, one in Jordan\u2019s terminal in Aqaba, which Egypt was given the right to in an agreement inked last year, and a <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/291997ca-453f-41e9-a363-a5ecb331befb\/\" style=\"\" rel=\"noopener\">newly-leased<\/a> Norwegian floating storage and regasification unit currently docked in Ain Sokhna. The state contracted the unit after a fall in domestic production <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/317bf16c-ec16-489f-ac56-05ad40a04693\" style=\"\" rel=\"noopener\">pushed<\/a> the country from being a net exporter to a net importer of LNG. The government is in talks with Jordan to <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/9e27ed67-0e5a-45d0-b840-eb5f360b9301\/\" style=\"\" rel=\"noopener\">jointly purchase a new floating regasification unit<\/a>, with discussion of leasing out the ship to other countries should our supply gap diminish.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>But that\u2019s not enough:<\/strong> Our source tells us that Egypt needs at least three regasification units to meet the increasing industrial and commercial demand for gas. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Long-term leases leave the market short on available units:<\/strong> There are currently no regasification units up for lease from manufacturers, since leasing contracts typically extend for 15-20 years, the source told us. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Eni has been showering us with love: <\/strong>Over the past month, Eni has agreed to inject new investments in <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/97c6012f-bce9-4cd3-a3da-a6e9fd62038e\/%253cmark%253eeni%253c%2Fmark%253e-to-drill-two-new-wells-in-zohr-in-2025\" style=\"\" rel=\"noopener\">well-drilling<\/a> and <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/61b1e9bb-7898-4b33-9819-909aef30fdb0\/%253cmark%253eeni%253c%2Fmark%253e-to-boost-egypt'\" style=\"\" rel=\"noopener\">exploration and development<\/a> in Egypt\u2019s oil and gas sector. The government\u2019s clearing of USD 1.3 bn in arrears owed foreign oil and gas companies was key to encouraging Eni to further invest in Egypt, our source says.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Locking in low prices:<\/strong> The source noted that the country\u2019s gas needs have been secured until February of next year after the government took advantage of current low oil prices to contract more shipments. Finance Minister Ahmed Kouchouk last week said that the government is <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/21340043-4153-493c-b299-be6b09b9e480\/egypt-launches-its-biggest-wheat-tender-ever\" style=\"\" rel=\"noopener\">moving quickly to take advantage of lower commodity prices<\/a> amid a <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/edition\/am\/ccdca09e-b890-4c64-befb-02e6d0d8d8ca\/global-markets-meltdown-hits-egypt-%25e2%2580%2594-pushing-the-egp-to-six-month-lows\" style=\"\" rel=\"noopener\">meltdown<\/a> in global markets.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The facility will be built near the Damietta LNG plant<\/p>\n","protected":false},"author":1,"featured_media":639662,"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":[7135,93,197,72,7111,91],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-639661","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","tag-egas","tag-energy","tag-eni","tag-enterpriseam","tag-infrastructure","tag-oil-and-gas","wpautop","entry"],"acf":{"mongo_id":"6cf2075b-4d1c-428b-b44d-7322af3411c5","order":"4","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/8\/1027.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Egypt is in talks with Italy\u2019s Eni over a new USD 150 mn fixed regasification unit","related_issue":[639656],"teaser":"The facility will be built near the Damietta LNG plant","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2024\/8\/.cf176a4e-2c78-4fa3-8139-d25dc7812f7d.mp3"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - 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An agreement reached\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\/2020\/12\/174.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":575284,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/10\/11\/ufg-egypt-revive-talks-to-reopen-damietta-lng-facility\/","url_meta":{"origin":639661,"position":1},"title":"UFG, Egypt revive talks to reopen Damietta LNG facility","author":"enterpriseam admin","date":"11 October 2020","format":false,"excerpt":"Could we finally be approaching the end of the Damietta LNG saga? Talks have resumed between Union Fenosa Gas (UFG) and the Madbouly government that could potentially see the Damietta LNG plant reopen after eight years of inactivity, S&P Global reports, citing an Eni spokesperson. After a collapse in negotiations\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\/10\/91.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":564726,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/02\/23\/project-bring-damietta-lng-back-to-life-to-fully-ratchet-up-on-15-march\/","url_meta":{"origin":639661,"position":2},"title":"Project \u201cbring Damietta LNG back to life\u201d to fully ratchet up on 15 March","author":"enterpriseam admin","date":"23 February 2021","format":false,"excerpt":"EXCLUSIVE- Dispute that put Damietta LNG in a coma to end next month: It seems possible that the plant will be making regular scheduled shipments starting from next month, as a final agreement to establish a new ownership structure for the Damietta LNG plant is due to be finalized on\u2026","rel":"","context":"In &quot;SPEED ROUND: ENERGY&quot;","block_context":{"text":"SPEED ROUND: ENERGY","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round-energy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/2\/495.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":567642,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/12\/02\/damietta-lng-plant-could-reopen-in-1q-boosting-our-east-med-hub-ambitions\/","url_meta":{"origin":639661,"position":3},"title":"Damietta LNG plant could reopen in 1Q, boosting our East Med hub ambitions","author":"enterpriseam admin","date":"2 December 2020","format":false,"excerpt":"Damietta LNG plant could reopen early next year after Eni, Naturgy seal agreement: Italian energy giant Eni has reached an agreement with the Egyptian government and its Union Fenosa Gas (UFG) partner Naturgy to finally re-open the Damietta LNG plant by the end of 1Q2021 after an eight-year hiatus, Eni\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\/2020\/12\/42.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":597603,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/07\/31\/damietta-lng-facility-to-work-at-full-capacity-in-4q2019\/","url_meta":{"origin":639661,"position":4},"title":"Damietta LNG facility to work at full capacity in 4Q2019","author":"enterpriseam admin","date":"31 July 2019","format":false,"excerpt":"The Damietta LNG facility will be operating at its full capacity of 5 mn tonnes a year in 4Q2019, an unnamed industry official told Youm7. Italy\u2019s Eni saidearlier this month that it is in talks over the LNG facility in Damietta and expected that it should begin operations \u201csoon this\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":[]},{"id":623337,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/10\/28\/eni-naturgy-jv-looking-to-re-launch-operations-at-damietta-lng-facility-in-2019\/","url_meta":{"origin":639661,"position":5},"title":"Eni-Naturgy JV looking to re-launch operations at Damietta LNG facility in 2019","author":"enterpriseam admin","date":"28 October 2018","format":false,"excerpt":"Italy\u2019s Eni and its Spanish partner Naturgy are in \u201cadvanced talks\u201d to re-launch operations at their Damietta LNG facility in 2019, Eni\u2019s CFO Massimo Mondazzi said on Friday, according to Reuters. The World Bank\u2019s International Centre for Settlement of Investment Disputes had ordered Egypt to pay USD 2 bn in\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\/639661","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=639661"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/639661\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/639656"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/639662"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=639661"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=639661"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=639661"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=639661"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=639661"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}