- Egypt and ENI announce a major offshore gas discovery, boosting reserves with an estimated 2 trillion cubic feet of gas and significant condensates.
- The find supports Egypt’s energy security strategy, as the country faces rising import costs and supply disruptions linked to regional conflict.
Egypt and Eni have announced a significant natural gas discovery off Egypt’s Mediterranean coast. This development comes as Egypt works to secure its energy supply amid regional tensions linked to the conflict involving the US, Israel, and Iran.
ENI discovered the reserves through the drilling of the Denise W exploration well. The well lies about 70 kilometres offshore in the Eastern Mediterranean Temsah oil and gas field. Preliminary estimates show that the site holds around 2 trillion cubic feet of natural gas.
In addition, Egypt’s petroleum ministry confirmed that the discovery includes about 130 million barrels of petroleum condensates. The government aims to use this development to boost production, offset natural decline, and reduce the country’s import bill.
Egypt has faced major supply disruptions in recent months. Gas imports from Qatar and Israel have declined due to the ongoing regional conflict. As a result, the government has introduced energy-saving measures such as business curfews, higher fuel prices, and delayed public projects.
Prime Minister Mostafa Madbouly recently stated that the crisis has sharply increased the country’s gas import bill. Monthly costs have risen from $560 million to $1.65 billion.
The petroleum ministry has begun preparing the Denise W well for testing. After testing, operators will drill additional wells and construct an offshore production platform before bringing the field into operation.
Egypt continues to expand its energy portfolio. Recently, it announced another discovery with Apache Corporation in the Western Desert, which will produce about 26 million cubic feet of gas per day.
Although Egypt once aimed for energy self-sufficiency, it has adjusted its strategy in recent years. Following the 2015 discovery of the Zohr gas field, the largest in the Mediterranean, the country shifted focus. It now positions itself as a regional gas processing and export hub, using its liquefaction facilities to handle gas from neighbouring countries such as Cyprus.