Egypt 'taking steps' over $2 billion payment to Union Fenosa Gas: Statement

Reuters , Wednesday 5 Sep 2018

Egypt said on Wednesday it was "taking all necessary steps" over $2 billion the World Bank ordered it to pay to Italian-Spanish Union Fenosa Gas (UFG) because of a lack of gas supply to an Egyptian plant in which the company has a majority stake.

A statement from Egypt's petroleum ministry for the first time acknowledged the decision by a World Bank arbitration body, but did not elaborate on what steps it was taking.

The World Bank body ordered Egypt to pay the money to Union Fenosa Gas (UFG), a joint venture between Spain's Gas Natural and Italy's Eni, the Financial Times reported on Monday.

The Damietta liquefied natural gas (LNG) plant is 80 percent owned by UFG, with the remaining 20 percent split evenly between state-owned companies EGAS and EGPC.

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