Damietta Segas LNG Terminal

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Damietta SEGAS LNG Terminal is an operating LNG export terminal in Damiette, Egypt. SEGAS stands for Spanish Egyptian Gas Company.

Location

Damietta Segas LNG Terminal is located 60 kilometers west of Port Said.

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Project Details

Project Details, Train 1

• Operator: SEGAS SERVICES
• Owner: SEGAS
• Parent: Eni (50%), Egyptian Natural Gas Holding Company (EGAS - 40%), Egyptian General Petroleum Corporation (EGPC – 10%)
• Location: Damiette Port, Damiette, Egypt
• Coordinates: 31.469, 31.7473 (exact)
• Capacity: 5 mtpa
• Cost: US$1.4 billion (approximate)
• Financing: US$300 million loan from the European Investment Bank
• Status: Operating
• Type: Export
• Start Year: 2005, idled in 2012, restarted in 2021

Project Details, Train 2

• Owner: Eni (50%), Egyptian Natural Gas Holding Company (EGAS - 40%), Egyptian General Petroleum Corporation (EGPC – 10%)
• Location: Damiette Port, Damiette, Egypt
• Coordinates: 31.469, 31.7473 (exact)
• Capacity: 5 mtpa
• Status: Cancelled
• Type: Export
• Start Year:

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Background

Damietta SEGAS is an LNG export terminal in Damiette, Egypt. It has one train.

Declining domestic gas production and rising gas demand in Egypt led to the idling of Damietta Segas in 2012. The gas that had acted as feedstock for the plant was diverted to maintain gas supply to Cairo. At the time, it was unknown as to when (or whether) the plant would be restarted.

In 2015, Egypt became a net LNG importer. Political upheaval caused power shortages and forced Egypt to save gas for is own use. In 2017, the International Gas Union predicted new gas drilling in the Zohr gas field of the Mediterranean Sea, as well as Egypt's West Nile Delta, could restore Egypt's status as a net gas exporter by 2021.

In May 2015, Damietta Segas LNG Terminal owners, Spain’s Union Fenosa Gas Company, signed a letter of intent with US Noble Energy, a 36 per cent owner of Israel’s Tamar gas field, to export 2.5 trillion cubic feet of gas over 15 years to Damietta Segas LNG.

Forbes reported in November 2015 that if Egypt joined Cyprus and Israel in a venture to import gas to Egypt, the three countries could have enough infrastructure to form a regional Eastern Mediterranean gas hub.

According to the International Gas Union’s World LNG 2017 report, Egypt was the 18th largest LNG exporter by share between 2015 and 2016.

According to the International Group of Liquefied Natural Gas Importers (GIIGNL) 2020 Annual Report, "In February 2020, Eni signed a series of agreements with the Arab Republic of Egypt, the Egyptian General Petroleum Corporation, the Egyptian Natural Gas Holding Company and Naturgy for the restart of the Damietta liquefaction plant by June 2020, which had been idle since November 2012."

It was reported in June 2020 that plans to revive the plant had fallen through due to adverse economic conditions for LNG project developers which the COVID-19 pandemic had amplified.

Egypt's oil minister Tarak El-Molla announced in January 2021 that the terminal would reopen in February 2021, marking a revival of Egypt's LNG push, in particular to the European market. The plan involved shipping gas derived from Egypt's giant Zohr field as well as some gas imported from Israel.

On February 23, 2021, the export terminal came back online after idling for eight years. According to Bloomberg reporting, Egypt accounted for only about 1% of global LNG supply in 2019, but "the re-opening of the LNG terminal helps its plan to become an export hub on Europe's doorstep."

In May 2023, however, the Damietta LNG Terminal halted production because of an increased domestic demand for gas in Egypt. Production at the Egyptian LNG facility was also temporarily halted in July of that same year. In January 2024, production at the Damietta Terminal resumed, but was again halted in May of 2024 due to another seasonal uptick in domestic demand during the summer months in Egypt. Egypt has plans to import LNG shipments from July to October 2024 to keep up with the demand.

Proposed Expansion Background

In 2005, construction of a second train was proposed, which would have added an additional 5.55 million tonnes per year of capacity. It was to be supplied from the Satis gas discovery in the offshore Nile Delta. However, the plan was postponed due to limited gas reserves and increased domestic demand in Egypt. There have been no development updates since 2005, and the proposed expansion is presumed to be cancelled.

Articles and resources

External articles

Wikipedia also has an article on SEGAS LNG. This article may use content from the Wikipedia article under the terms of the GFDL.