The Egyptian Natural Gas Holding Company (EGAS) and Italy’s Eni signed on Wednesday a framework agreement that will allow to maximize gas production and liquefied natural gas (LNG) exports.
The agreement aims to promote Egyptian LNG export to Europe, and specifically to Italy, in line with the transition to a low carbon economy, an Egyptian cabinet statement read.
The parties agreed to valorize Egyptian gas reserves by increasing jointly operated gas activities and identifying opportunities to maximize short-term gas production.
Eni, which in 2015 discovered the super giant Zohr gas field in Egypt, will also optimize the exploration campaigns in existing blocks and in the newly acquired acreage in the Nile Delta, Eastern Mediterranean and Western Desert regions.
This agreement, together with the one signed for the restart of Damietta liquefaction plant last year, will provide LNG cargoes for overall volumes of up to three billion cubic meters in 2022 for Eni LNG portfolio bound to Europe and Italy, Reuters reported.
Both companies have agreed to launch an awareness campaign through the Egyptian General Petroleum Corporation (EGPC) to enhance energy efficiency at all the petroleum sector companies’ sites and headquarters, which would contribute to reducing electricity consumption and raising energy efficiency, the statement added.
Italy, which sources about 40% of its gas imports from Russia, has been scrambling to diversify its energy supply mix as the conflict in Ukraine escalates.
It concluded an agreement on Monday to ramp up gas imports from Algeria by around 40% in its first major deal to find alternative supplies following Russia's invasion of Ukraine.
