Egyptian President Abdel Fattah El-Sisi met with Eni CEO Claudio Descalzi in Cairo on November 25, 2025, to discuss major new investments in the country’s energy industry. The Italian energy giant plans to pump an additional $8 billion into Egypt’s gas sector over the next five years, aiming to expand production and exploration amid growing regional demand for natural gas.
Key Details from the High-Level Meeting
President El-Sisi welcomed Descalzi and praised Eni’s role in Egypt’s energy landscape. The company already produces about 40 percent of Egypt’s natural gas, making it a key player in the nation’s push to become a regional energy hub.
Descalzi highlighted the strong partnership and Egypt’s supportive policies for foreign investors. He outlined plans for the $8 billion to focus on developing existing fields and launching new exploration efforts, especially in the Mediterranean Sea and Nile Delta areas.
The meeting also touched on Eni’s social contributions, including support for local development projects. Attendees included Prime Minister Mostafa Madbouly and Petroleum Minister Karim Badawi, showing the government’s commitment to this collaboration.
Why This Investment Matters for Egypt’s Economy
Egypt has been working to boost its gas output to meet domestic needs and increase exports. The new funds from Eni come at a time when global energy prices are high, and countries are seeking stable supplies amid geopolitical tensions.
This investment builds on Eni’s long history in Egypt, where it has operated for decades. Recent discoveries, like the one in the Nile Delta last month, have added to optimism about untapped reserves.
Experts say such deals could create thousands of jobs and strengthen Egypt’s position in the global gas market. With natural gas making up a big part of Egypt’s energy mix, this move supports the country’s goal to reduce reliance on imports and enhance energy security.
- Job creation: Up to 5,000 new positions in exploration and production.
- Export potential: Aims to increase gas shipments to Europe and Asia.
- Environmental focus: Includes plans for sustainable practices in new projects.
The investment aligns with Egypt’s broader economic reforms, which have attracted over $20 billion in foreign direct investment in the energy sector since 2020.
Eni’s Broader Strategy in the Region
Eni is not stopping at gas. The company is eyeing opportunities in petrochemicals, mining, and sustainable aviation fuel in Egypt. This diversified approach shows confidence in Egypt’s growth story.
In recent years, Eni has extended concessions in the Gulf of Suez and Nile Delta until 2040. Other firms, like UK’s Harbour Energy, have also made discoveries, signaling a hot spot for investment.
Descalzi mentioned an ongoing drilling campaign started in October 2025, which could uncover more reserves. This fits into Eni’s global push for cleaner energy transitions while maintaining fossil fuel operations.
| Recent Eni Projects in Egypt | Investment Amount | Focus Area | Expected Output |
|---|---|---|---|
| Meleiha Gas Processing Plant | $180 million | Western Desert | 100 million cubic feet per day |
| Nile Delta Exploration | Part of $8 billion | Offshore drilling | Increased gas production by 2030 |
| Gulf of Suez Extension | Ongoing | Field development | Extended to 2040 |
These efforts could help Egypt achieve its target of producing 8 billion cubic feet of gas per day by 2030.
Potential Challenges and Future Outlook
While the investment is promising, challenges remain. Fluctuating global oil prices and regulatory hurdles could impact timelines. Egypt also faces competition from other gas-rich nations like Qatar and Algeria.
On the positive side, Egypt’s strategic location near Europe makes it an ideal export point. The government has streamlined investment rules, which Descalzi praised during the meeting.
Analysts predict this could lead to more partnerships. For instance, Eni might collaborate with local firms on carbon capture technologies to meet international standards.
Looking ahead, success here could inspire similar deals in Africa, where energy demand is rising fast.
Global Context and Related Developments
This announcement follows a trend of European firms investing in African energy. Just last year, TotalEnergies committed billions to projects in neighboring countries.
In Egypt, gas production hit record highs in 2024, thanks to fields like Zohr, discovered by Eni in 2015. That find alone added trillions of cubic feet to reserves.
The $8 billion plan supports Egypt’s vision under El-Sisi to diversify the economy beyond tourism and agriculture. It also ties into global efforts to shift from coal to gas as a bridge fuel.
If all goes well, Egypt could export more liquefied natural gas, helping Europe reduce dependence on Russian supplies amid ongoing tensions.
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