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ENI and Egypt Announce Major Gas Discovery Amid Rising Energy Costs
Italian energy company ENI and Egypt have announced a significant natural gas discovery in the Eastern Mediterranean, offering a potential boost to Cairo as the Iran war drives energy import costs sharply higher. Preliminary estimates suggest the Temsah field, located off Egypt’s Mediterranean coast, contains around 2 trillion cubic feet of gas, ENI said in a statement on Tuesday.
The discovery also includes 130 million barrels of petroleum condensates, according to Egypt’s petroleum ministry. Officials described the find as part of a broader effort to increase domestic production and reduce Egypt’s reliance on imported energy. The Denise W well, the first exploratory well in the Temsah Concession, is now being prepared for testing. Once complete, additional wells will be drilled and an offshore production platform built before the field can be brought online.
Denise W 1 lies 70 kilometres offshore in 95 metres of water and less than 10 kilometres from existing infrastructure. ENI operates the project with a 50% stake, while BP holds the remaining 50% through their joint venture Petrobel.
The discovery comes at a critical time for Egypt. The Iran war has disrupted the country’s gas supplies from Qatar and Israel, forcing Cairo to adopt energy-saving measures including higher fuel prices, reduced government spending, and business curfews. Prime Minister Mostafa Madbouly said last month that the conflict had nearly tripled Egypt’s monthly natural gas import bill, from $560 million to $1.65 billion.
The Temsah find recalls Egypt’s previous major offshore breakthrough, the 2015 Zohr field. At the time, Zohr, holding an estimated 30 trillion cubic feet of gas, raised hopes that Egypt could achieve energy self-sufficiency and become a major exporter. Those ambitions have since been scaled back, with the country focusing on serving as a regional processing and transit hub for gas, using its liquefaction terminals to route supplies from neighbouring countries, including Cyprus.
Egypt’s energy sector has also seen recent onshore discoveries. Last month, the country and Apache Corporation announced a find in the Western Desert expected to yield 26 million cubic feet per day.
Whether the Temsah discovery will ease Egypt’s energy crunch depends on how quickly production can begin and the duration of the Iran war. Analysts note that while the field adds to Egypt’s reserves, bringing the gas to market requires time to drill additional wells and build infrastructure.
For Egypt and Europe, the Temsah find could offer a measure of relief in the face of rising energy costs. The discovery highlights Egypt’s ongoing efforts to strengthen domestic energy production, safeguard supply, and reduce exposure to global disruptions caused by conflict in the region.
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