A new agreement between Eni and EGAS aims to increase gas production and exports of liquefied natural gas. Magdy Galal, Chairman of EGAS, and Guido Brusco, COO of Eni Natural Resources, signed the agreement in Cairo with the objective of promoting the export of Egyptian gas to Europe, specifically to Italy, in the context of the transition to a low carbon economy.
Through increasing jointly operated gas activities and identifying opportunities to maximize short-term gas production, the parties agreed to maximize Egyptian gas reserves. Additionally, Eni will optimize exploration campaigns on existing blocks and on newly acquired acreage in the Nile Delta, Eastern Mediterranean, and Western Desert regions.
In the last few months, Eni has announced a number of new collaborations with Egypt. In March, the company’s CEO, Claudio Descalzi, met with the Egyptian President Abdel Fattah el-Sisi and the Egyptian Minister of Petroleum and Mineral Resources, Eng. Tarek El-Molla. A major part of the conversation was related to Egypt’s production of natural gas as well as LNG.
There is an aspiring goal for Egypt to become a new energy hub in the Mediterranean region. As a result of the discovery of the Zohr gas field, Eni was one of the firms contributing to these aspirations. It is estimated that Eni produces approximately 360,000 barrels of oil equivalent per day in Egypt, which makes it a significant stakeholder in the country’s hydrocarbon ecosystem.