Egypt is tackling a gas crisis by boosting domestic production through foreign partnerships, with Eni's Meleiha project marking a key step.
Egyptian gas import costs rise
Egypt's public finances are under strain due to rising costs of importing natural gas, prompting the government to seek ways to reduce its reliance on foreign supplies. This has led to efforts to boost domestic production and involve foreign energy companies in local projects.Eni starts phase 2 of Meleiha project
On October 20, the Italian energy company Eni announced the start of phase 2 of its Meleiha gas project in Egypt's western desert. This marks a key step toward the project's full operational launch and aims to increase domestic gas production.Joint venture drives development
The Meleiha project is a joint venture between Eni and the Egyptian public company EGPC, known as Agiba Petroleum Company. This collaboration is part of a broader initiative to create a new gas hub within the Merged Meleiha concession area.Facility designed for high production capacity
The new facility is designed to process up to 100 million cubic feet of gas per day, equivalent to about 2.8 million cubic meters. It includes development wells, collection networks, pipelines, and a dedicated pipeline to connect extracted gas to Egypt's existing infrastructure.Western desert holds promise for gas production
Eni highlights the western desert as one of Egypt's most promising energy regions, where it has operated since 1954. The area is seen as a key location for cost-effective gas extraction near existing infrastructure.Egypt faces gas production decline
Egypt is experiencing a significant decline in gas production, with output peaking in 2021. The giant Zohr field, once a major supplier, has seen a sharp drop in output, leading to increased reliance on imported liquefied natural gas (LNG).Import volumes set new records
According to S&P Global Platts, Egypt imported a record 9 million tons of LNG in 2025. This volume is expected to rise by about 26 percent in 2026 due to growing domestic demand for energy.Egypt expands gas production projects
Cairo is actively expanding its gas production efforts, with the Egyptian General Petroleum Corporation (EGAS) reporting on nine development projects and 28 new wells connected in 2025, totaling $1.12 billion in investments.Eni plays central role in Egypt's energy strategy
Eni is a key player in Egypt's energy revival, operating across multiple regions including the Mediterranean, Nile Delta, Sinai, and the western desert. The company's share in production reached about 242,000 barrels of oil equivalent per day in 2025.Meleiha concession extended to 2036
Eni's agreement for the Meleiha concession has been extended until 2036, with the possibility of further renewal. This ensures long-term exploitation of the area's reserves. The project is part of a broader portfolio of Eni's activities in Egypt, including the development of the Denise West field in the Mediterranean.
