Union Fenosa says guarantees not sufficient to restart Egypt LNG plant
This is an interesting one. UFG was slapped in the face once – now they are weary and the rest of the world is looking. Egypt will not be the last economy on earth which misjudges its ow domestic gas needs and resorts to expropriation when it just uses stuff that does not belong to it. UFG made a multi decade call when they invested in the liquefaction plant. I know that its easy to renege on commitments taken in the past but can Egypt deal with the long tail consequences? This will not be easy to resolve.
Union Fenosa Gas (UFG) said it had not received sufficient guarantees over a $2 billion payment in ongoing talks with Egypt to restart a liquefied natural gas (LNG) plant which has been idle for several years due to a lack of gas supply.
