Egypt to pay Spanish firm $2bn compensation over collapse of gas deal

Gas processing plant [file photo]

On Thursday Spanish gas firm Naturgy have confirmed it would resume its efforts to obtain $2 billion from Egypt in compensation for the collapse of a gas project in the country, have reported. In a statement, the gas firm announced the collapse of the deal with Italy’s Eni oil and gas company and the Egyptian government in relation to a gas project in Damietta, reported according to Reuters. According to the deal, Naturgy should have finished its share in the project, which was due to be jointly owned by Eni and Egypt.

Naturgy explained that the deal included many conditions which were not achieved, stating that it is ready to reach an amicable solution to the issue.

World Bank arbitration body, the International Centre for Settlement of Investment Disputes, ruled in 2018 that Egypt was due to pay the $2 billion to Eni and Naturgy. Egypt stopped its pledges towards the deal as the country faced internal energy shortages following the political turmoil, as a result of the Egyptian revolution in 2012.

Source: Middle East Monitor