Union Fenosa Gas: Human Resources Start-up - Teaching Note

At the end of the 1990s, in response to new challenges and opportunities in the energy sector, Unión Fenosa made a strategic decision to enter the gas market. Its strategy was to diversify its sources of gas and become actively involved in all stages of supply. The start-up of the Damietta plant (Egypt) was a huge challenge not only in technical terms (it was completed in record time: just three years), but also in terms of human resources. Unión Fenosa had no experience in the gas business (though it did have international experience). The Unión Fenosa Corporate University (UCUF) played an important role in getting the Damietta LNG plant ready for start-up on time. Decisions concerning selection, pay and training were informed by a particular approach to business that has made Damietta a success. However, the future holds challenges for employee retention, given the imminent start-up of other LNG plants in the area.