Eni announces significant gas discovery off Egypt’s Mediterranean coast

Italian energy major Eni (BIT:ENI) announced a significant discovery of natural gas and condensates off Egypt’s Mediterranean coast on April 7, a development that could bolster the country’s energy outlook, according to a statement.

The discovery could support Egypt’s efforts to boost domestic gas output and strengthen energy security, particularly amid rising regional and global demand driven by ongoing geopolitical tensions.

It comes as Egypt faces ongoing electricity shortages driven by declining local production and reduced gas imports. Authorities have responded with measures including higher fuel prices and electricity rationing.

Eni said preliminary estimates suggest the site contains around 2 trillion cubic feet of gas, along with nearly 130mn barrels of associated condensates. The discovery, named Deniz W1, is located in the Tamaris concession area, about 70 kilometres offshore, in waters roughly 95 metres deep.

The drilling of the Deniz W1 well follows a binding agreement signed in July 2025 between Eni, the Egyptian General Petroleum Corporation and the Egyptian Natural Gas Holding Company to extend the Temsah concession for a further 20 years. Eni operates the Deniz development under the Temsah concession with a 50% stake, in partnership with BP, which holds the remaining share. Operations are carried out by Petrobel, a joint venture between Eni and the Egyptian General Petroleum Corporation.

The company stated that the newly discovered field contains a premium gas-bearing sandstone reservoir with a net thickness of around 50 metres, comparable to the nearby Temsah field, which has been in production since 2001. This similarity suggests strong potential for efficient extraction and sustained output.

The company noted that the proximity of the find to existing production infrastructure offers a major advantage, enabling faster development and reduced operational costs. This, in turn, is expected to improve the project’s economic viability.

Eni added that the reservoir features high-quality, gas-bearing sandstone layers with an estimated net thickness of around 50 metres, indicating strong production potential.

Eni, which has operated in Egypt since 1954, continues to expand its investments in the country in partnership with the Egyptian General Petroleum Corporation and other international firms. The Italian firm remains Egypt's leading hydrocarbon producer and is expanding exploration across the Eastern Mediterranean, the Western Desert, and the Gulf of Suez. The company is currently fast-tracking the development of the offshore Cronos gas field, utilising its existing Zohr infrastructure and the Damietta LNG plant to boost domestic supply and facilitate exports to Europe.

Earlier in March, Eni said it would invest $2bn in Egypt’s energy sector before the end of 2026. The aim is to expand exploration activities and boost production from existing fields to meet domestic demand and enhance exports.

In another development that will help alleviate Egypt's severe energy shortage, Israel resumed gas exports to Egypt from the Leviathan field, following a 32-day suspension due to the conflict with Iran.