Italian energy company ENI announced on Tuesday a major natural gas discovery off Egypt’s Mediterranean coastline, identifying an estimated 2 trillion cubic feet of gas in the Temsah oil and gas field located in the Eastern Mediterranean. This development comes as Egypt faces mounting energy supply challenges due to disruptions linked to the ongoing conflict involving the US, Israel, and Iran.
Egypt’s gas imports from Qatar and Israel have been severely affected by the regional war, prompting the government to implement several energy conservation measures. These include imposing a business curfew, increasing fuel prices, and slowing down various government projects to manage the crisis. Prime Minister Mostafa Madbouly highlighted last month that the conflict has nearly tripled Egypt’s monthly natural gas import costs, escalating from $560 million to $1.65 billion.
In a related development, Egypt announced another gas discovery last month in the Western Desert in partnership with Apache Corporation. The petroleum ministry reported that this field is expected to produce 26 million cubic feet of gas per day. Egypt has been grappling with energy supply issues for several years, striving to meet domestic demand while also aiming to establish itself as a regional energy hub.
Back in 2015, the discovery of the Zohr gas field off Egypt’s coast, the largest in the Mediterranean with an estimated 30 trillion cubic feet of reserves, had raised expectations that Egypt would achieve energy self-sufficiency and become a significant gas exporter. However, in recent years, Egypt has shifted its strategy to become a processing and export center, utilizing its liquefaction terminals to handle offshore gas from neighboring countries, including Cyprus.
