Italy's ENI announces gas discovery off Egypt coast

CAIRO, Egypt: Italian energy giant ENI announced on Tuesday a “significant” natural gas discovery off Egypt’s Mediterranean coast, as the North African country struggles to secure its energy needs due to the US and Israel’s war with Iran.

“Preliminary estimates indicate about 2 trillion cubic feet of gas” in the Eastern Mediterranean Temsah oil and gas field, the company said in a statement.

Egypt’s natural gas supplies from Qatar and Israel have been significantly disrupted due to the Middle East war, leading Cairo to enact energy-saving measures including a business curfew, raising fuel prices and slowing government projects.

Prime Minister Mostafa Madbouly said last month the war had nearly tripled the country’s natural gas import bill, from $560 million to $1.65 billion per month.

Last month, Egypt announced another new discovery, with Apache Corporation, in its Western Desert, which the petroleum ministry said would yield 26 million cubic feet per day.

Egypt has struggled with energy supplies in recent years, having sought to both meet its domestic needs and position itself as a regional energy hub.

In 2015, the discovery of the Zohr field off Egypt’s coast, the Mediterranean’s largest gas field holding an estimated 30 trillion cubic feet, raised hopes Egypt would become self-sufficient and a major gas exporter.

But in recent years Egypt has pivoted to position itself as a processing and export hub, using Egyptian liquefaction terminals to route offshore gas from other countries including Cyprus.