Egypt’s President, Abdel Fattah al-Sisi, recently met with Eni CEO, Claudio Descalzi, to discuss strategies to support gas production in the country. This meeting comes after Egypt had to turn to the liquefied natural gas (LNG) market to meet its domestic demand due to a decline in domestic gas production.
Egypt had initially aimed to become a major gas exporter following the discovery of the Zohr offshore field by Eni in 2015. However, production levels have been decreasing since 2021, reaching a six-year low this year. The average production at the Zohr field was reported to be 1.9 billion cubic feet per day (bcf/d) in the first half of this year, significantly lower than the peak production levels in 2019.
Speculation has arisen regarding technical issues and a potential investment halt at the Zohr field, prompting Eni to announce plans to restore gas output at the field starting next year. During the meeting, President al-Sisi and CEO Descalzi also discussed Egypt’s role in developing a gas hub in the eastern Mediterranean and Eni’s commitment to decarbonization through methane emissions reduction and energy efficiency solutions.
In addition to these discussions, three trading sources revealed that Egypt is planning to issue a tender for up to 20 cargoes of LNG to meet demands in the first quarter of 2025. This move indicates the country’s continued reliance on LNG imports to bridge the gap in domestic production.
Overall, the collaboration between Egypt’s President and Eni’s CEO highlights the importance of supporting gas production in the country and exploring opportunities for future growth in the energy sector. By addressing challenges in domestic production and focusing on sustainable practices, Egypt aims to strengthen its position as a key player in the global energy market.