Egypt Ordered To pay $2bn to Unión Fenosa Gas in Gas Dispute

Egypt Ordered To pay $2bn to Unión Fenosa Gas in Gas Dispute

An arbitration tribunal has ruled that Egypt must pay a Spanish-Italian joint venture $2bn (£1.6bn) in compensation for failing to honour a gas supply contract in the wake of the turmoil unleashed by the Arab Spring.

The case was taken to arbitration by Spain’s Unión Fenosa Gas 4 years ago after Egypt stopped supplying gas to one of the joint venture’s liquefied natural gas plants as the country faced internal energy shortages.

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The tribunal found that in stopping the gas supply, Egypt had contravened a bilateral investment protection treaty with Spain.

Analysts say that the $2bn compensation is likely to be paid in the form of renewed gas supplies rather than in cash.

Egypt is expected to resume gas exports following a number of significant natural gas discoveries in the country

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