World Bank arbitration body fines Egypt $2bln over Spanish firms gas cut

Cairo: The International Centre for Settlement of Investment Disputes, a global arbitration institution affiliated to the World Bank (WB), has fined Egypt $2 billion for failing to supply natural gas to a Spanish-Italian-owned re-gasi?cation plant.

Egypt has stopped supplying Union Fenosa Gas’s Damietta LNG plant with natural gas on the back of the North African country’s political situation after the Arab Spring.

Union Fenosa Gas, a joint venture between Spain's Naturgy and Italy's Eni, had filed a case against the Egyptian authorities in 2014, the Financial Times (FT) reported.

Under the ruling, the Arab world's most populous country will likely pay the fine by renewing gas supplies to the LNG plant, which were halted four years ago, instead of cash payment.

The step could speed up the resumption of Egypt’s LNG exports, according to the FT.

Source: Mubasher

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