Italy’s Eni discovers 2 trillion cubic feet of gas offshore Egypt

Italian energy company Eni discovered gas and condensates at an offshore site in Egypt’s Eastern Mediterranean after drilling an exploration well, Reuters reported on 7 April, in a development that could support alternative energy supply amid ongoing disruptions.

The discovery was made at the Denise W-1 well in the Temsah concession. Preliminary estimates indicate around 2 trillion cubic feet of gas in place and about 130 million barrels of associated condensates.

Eni said the find would support Egypt’s efforts to increase gas reserves and production to strengthen the country’s energy security. Domestic output has declined in recent years, leaving Egypt more dependent on imported fuel and vulnerable to supply disruptions.

Egypt is currently facing spillover effects from the war with Iran, particularly in the energy sector, as disruptions to fuel supplies have pushed up costs. The government has responded by introducing energy-saving measures, including reducing electricity consumption, while also raising fuel prices and imposing price controls on essential goods such as bread to limit the impact on households.

Higher fuel costs have also fed into broader price increases, adding pressure on living costs and contributing to wider economic strain.

The site is located about 70 km offshore in water depths of 95 metres and less than 10 km from existing infrastructure, which could allow for faster development.

The well was drilled following a binding agreement signed in July 2025 with Egyptian authorities to renew the Temsah concession for 20 years.

Eni operates the Denise Development Lease with a 50% working interest alongside BP, with operations carried out through Petrobel, a joint venture with Egypt’s state-owned Egyptian General Petroleum Corporation.

The discovery comes as the war with Iran continues to disrupt global energy markets, contributing to rising fuel and transport costs across Africa and raising concerns over economic growth and living costs.

Reuters, Eni, Maghrebi.org