Egypt’s President Abdel Fattah al-Sisi met with Eni’s CEO Claudio Descalzi to explore strategies for enhancing gas production, particularly in light of Egypt’s transition to the liquefied natural gas (LNG) market to satisfy domestic demand, according to reports from the Italian energy group.
After the discovery of the massive Zohr offshore gas field in 2015, Egypt aimed to become a significant gas exporter.
However, domestic gas production has declined since 2021, reaching a six-year low this year. In the first half of 2023, the average production at Zohr was recorded at 1.9 billion cubic feet per day (Bcfd), significantly lower than the peak production levels achieved in 2019. This decline has raised concerns over potential technical issues and a halt in investment at the field.
During a conference call following Eni’s results announcement, the company’s Chief Operating Officer for Global Resources, Guido Brusco, stated that Eni plans to initiate efforts to restore some gas output at Zohr at the start of next year.
The discussions between President al-Sisi and CEO Descalzi also focused on Egypt’s role in establishing a gas hub in the eastern Mediterranean.
They emphasized Eni’s commitment to accelerating decarbonization efforts, which include reducing methane emissions and enhancing energy efficiency solutions.
In early October, three trading sources reported that Egypt is preparing to issue a tender for up to 20 LNG cargoes to meet demand for the first quarter of 2025.
