• Eni discovers 2 Tcf gas at Egypt’s offshore Temsah block
• Find near existing infrastructure could accelerate development
• Discovery supports Egypt’s push to reduce gas imports

Eni announced Tuesday a significant natural gas discovery in the Temsah concession in the eastern Mediterranean. The find was made at the Denise W-1 exploration well. Initial estimates put total gas resources at 2 trillion cubic feet (2 Tcf), alongside 130 million barrels of condensates.

Located 70 kilometers offshore at a water depth of 95 meters, the reservoir lies less than 10 kilometers from existing production infrastructure. This proximity could accelerate development, with potential cost and operational efficiencies.

The reservoir contains around 50 meters of net pay in high-quality sandstone formations similar to those of the nearby Temsah field, which has been in production since 2001. Eni operates the project with a 50% stake, alongside partner BP.

Egypt’s Energy System Under Pressure

The discovery comes as Egypt's energy system faces mounting pressure. Domestic production stands at roughly 4.1 billion cubic feet per day against demand of 6.2 billion cubic feet per day. The gap has widened as output from the giant Zohr field declined from around 2.7 billion cubic feet per day in 2022 to 1.9 billion cubic feet per day.

At the same time, the conflict in the Middle East has disrupted regional supply flows. Gas shipments from Qatar and Israel have been affected, driving a sharp rise in import costs. Egypt's monthly gas import bill climbed from $560 million to $1.65 billion. In response, the government raised fuel prices by between 14% and 30% and introduced spending restrictions, including a slowdown in public projects.

The Temsah discovery is part of a broader strategy to revive domestic production and reduce import dependence. The petroleum ministry said it will help offset the natural decline of existing fields and limit the country's energy import bill. It follows an agreement signed in July 2025 between Eni, EGPC and EGAS to extend the Temsah concession by 20 years.

Between Regional Ambitions and Supply Constraints

The implications extend beyond Egypt. The country is seeking to consolidate its position as an energy hub, using its LNG facilities to export or re-route gas from neighboring countries such as Cyprus. However, this model depends on sufficient volumes, a condition undermined by the ongoing decline in domestic output.

In the near term, Egypt continues to secure supply through liquefied natural gas imports. Agreements have been reached with several international players covering a potential total of 290 cargoes over 30 months, along with a partnership with Qatar for up to 24 additional cargoes. In parallel, more than 100 exploratory wells are scheduled to be drilled in 2026 as part of a broader production recovery strategy.

In Egypt, Eni produces approximately 242,000 barrels of oil equivalent per day and plans to invest $8 billion in the coming years to support exploration and production activities.

Olivier de Souza