In March 2014, Naturgy (formerly Gas Natural Fenosa) and ENI, the two partners of the Unión Fenosa Gas (UFG) joint venture, filed an arbitration claim against Egypt for the suspension of the activity of the LNG plant of Damietta, whose supply had been cut due to the severe economic crisis and civil protests in Egypt in 2011.
Egypt was sentenced to pay about US$2 billion in August 2018. The arbitrators considered that the investor had not been granted fair and equitable treatment required by the bilateral investment treaty between Spain and Egypt.
The case was eventually settled in December 2020. Under the agreement, Naturgy was to receive a US$600 million payment, which when completed would result in its departure from Egypt (its shares in UFG being acquired by the Egyptian Natural Gas Holding Company and the Egyptian General Petroleum Corporation), and the production at the plant was to resume.
Last update : May 2021