Egypt : ordered to pay $2bn to Spanish-Italian venture

Egypt cut the supply of gas during the uprising of the Arab Spring. Photo: RR

Casablanca (ADV) – An arbitration tribunal has ruled that Egypt must pay a Spanish-Italian joint venture $2bn (£1.6bn) in compensation for failing to honor 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 four 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.

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

© Bur-csa – S.E – African Daily Voice (ADV)