Union Fenosa Gas, the joint Eni and Spanish Naturgy company was forced to halt natural gas supplies to the Damietta facilities thus interrupting the cycle. It was back to the “Arab spring”, when Egypt’s own low gas supplies has forced the government to revert all available gas to internal market to avoid riots.
As UFG has lost external market opportunities it has decided to take the case to arbitration. It was agreed that the World Bank will assemble the panel to decide on the case. The panel has been working since 2014 and now it has ruled that Egypt owes UFG $2 billions.
“UFG expresses its great satisfaction with the outcome of the award since it reinforces its confidence in the final resolution of this long dispute and allows the company to reaffirm its commitment to Egypt and its willingness to continue its operations in the country generating wealth, welfare and social development,” the company said in the statement.
As UFG is not exiting the Egyptian market these two billions will be paid in form of some benefits, rather then the cash.