{"id":545856,"date":"2022-04-14T04:10:03","date_gmt":"2022-04-14T04:10:03","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2022\/04\/14\/egypt-to-increase-lng-exports-to-europe-with-eni\/"},"modified":"2022-04-14T04:10:03","modified_gmt":"2022-04-14T04:10:03","slug":"egypt-to-increase-lng-exports-to-europe-with-eni","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2022\/04\/14\/egypt-to-increase-lng-exports-to-europe-with-eni\/","title":{"rendered":"Egypt to increase LNG exports to Europe with Eni"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-01\"><\/a><strong> Eni signs agreement to supply more of our LNG to Italy, Europe: <\/strong>The Italian energy firm yesterday signed an agreement in Cairo with the state-owned Egyptian Natural Gas Holding Company (EGAS) designed to \u201cmaximize\u201d Egyptian LNG exports to Europe and boost Eni\u2019s gas production here, according to a cabinet <a href=\"https:\/\/www.facebook.com\/EgyptianCabinet\/posts\/379981644172262\">statement<\/a>.<\/p>\n<p><strong>\u201cThe agreement aims to promote Egyptian gas export to Europe, and specifically to Italy<\/strong>, in the context of the transition to a low carbon economy,\u201d Eni said in a <a href=\"https:\/\/www.eni.com\/en-IT\/media\/press-release\/2022\/04\/eni-and-egas-agree-increase-egypt-s-gas-production-and-supply.html\">statement<\/a>.<\/p>\n<p><strong>The details: <\/strong>The agreement will see production increase at the two companies\u2019 gas joint ventures; redouble Eni\u2019s exploration efforts in its <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/c5f11f01-49af-4e27-a91e-3410f499133d\">newly-acquired concessions<\/a> in the Western Desert, the Nile Delta and Mediterranean; and \u201cidentify [how to] to maximize short-term gas production,\u201d Eni said. Along with the <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/3613f080-5d75-4b85-af31-1b66fcda3204\">reopening of the Damietta LNG plant<\/a> last year \u2014 which Eni runs and in which it <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/784d29e8-b9ab-4b16-bdc4-20b5d110a590\">holds a 50% stake<\/a> \u2014 yesterday\u2019s agreement will boost the Italian firm\u2019s LNG exports to Italy and elsewhere in Europe to 3 bn cubic meters this year.<\/p>\n<p><strong>We had an inkling this was coming: <\/strong>Eni <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/7bb6d118-c4ff-4568-b7ff-c3d7bd2dd99f\">in March pledged<\/a> to bring more than 14 trn cubic feet of additional gas to the global market and mitigate Europe\u2019s energy crisis by \u201cleveraging established alliances with producing countries,\u201d including Egypt.<\/p>\n<p><strong>Why now? <\/strong>Europe is looking to wean itself off Russian energy amid the fallout from war in Ukraine, which may soon see the bloc <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/70303f56-25f2-41db-8edc-6c4465d14ead\">ban Russian oil altogether<\/a>. We\u2019re a strong option given our prime location just across the Med; our 2018 discovery of the <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/113f1ae6-53bc-4426-bbeb-805084941dff\">largest gas field in the region<\/a>; two operating liquefaction plants; and a pact to bring in Israeli gas from our neighbours\u2019 massive offshore fields. Egyptian gas is usually snapped up by Asian buyers, but shipments to Europe rocketed last year to more than <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/7bb6d118-c4ff-4568-b7ff-c3d7bd2dd99f\">2 mn metric tons<\/a>, up from just 270k the year before. And discussions on accelerating that trend have intensified with the war\u2019s outbreak \u2014 top EU official Frans Timmermans just days ago told Prime Minister Mostafa Madbouly that the <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/022ca147-bb08-4bb6-ba62-361b7381da4c\">bloc is looking to up its imports of liquefied natural gas (LNG)<\/a> from Egypt in the short term.<\/p>\n<p><strong>Italy is also tapping our neighbors in the region for more gas: <\/strong>The country\u2019s prime minister was in Algeria on Tuesday to sign an agreement upping its purchases of Algerian fuel, <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-04-13\/italy-steps-up-push-to-wean-off-russian-gas-with-egypt-agreement\">Bloomberg<\/a> reports. Eni \u2014 which is majority state-owned \u2014 is also trying to ramp up production in Libya, as well as in several African and Southeast Asian countries in which it operates.<\/p>\n<p><strong>This may be easier said than done: <\/strong>Ramping up production has <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/7a6f4c47-2df0-425f-8914-154120e7e56f\">proved difficult<\/a> for some of our oil-producing neighbors in the OPEC+ cartel amid snarled supply chains and staffing issues. Meanwhile, Oil Minister Tarek El Molla <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/b05357d8-d636-4372-a069-cf77d948b1e7\">said<\/a> late last year that Egypt\u2019s LNG terminals were running at maximum capacity, as the country tries to capitalize on the surge in natural gas prices overseas.<\/p>\n<p><strong>But Eni is well placed to help: <\/strong>The company has been operating in Egypt for decades, and its involvement in both gas production and liquefaction, combined with its European ties, means it can work to both up supply and facilitate exports.<\/p>\n<p><strong>And the firm has been very active in our energy sector lately: <\/strong>It was awarded fresh gas exploration blocks in the <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/2c4454f8-c6d8-46dc-a04b-f1d3ab0b9291\">2021 bid round<\/a>, has committed to spend at least <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/e23ca6f4-7f73-4872-a701-a93d211c3134\">USD 1 bn<\/a> to develop some of its local concessions, and could also partner with us on <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/4ed7b3c1-2514-4f68-9b61-11486f0e348a\">carbon capture<\/a> and <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/3b3e6cad-637c-4ca8-afe6-94472fcc12d4\">green hydrogen<\/a> projects in the run up to COP 27. Eni also <a href=\"https:\/\/www.eni.com\/en-IT\/media\/press-release\/2022\/04\/eni-announces-new-discoveries-western-desert-egypt.html\">today announced<\/a> fresh discoveries totaling 8.5k barrels of oil-equivalent per day in its Meleiha concessions in the Western Desert.<\/p>\n<p><strong>The news received attention from the foreign press<\/strong>: <a href=\"https:\/\/www.reuters.com\/business\/eni-signs-agreement-egyptian-lng-exports-europe-statement-2022-04-13\/\">Reuters<\/a> and <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-04-13\/italy-steps-up-push-to-wean-off-russian-gas-with-egypt-agreement?utm_campaign=socialflow-organic&utm_source=twitter&utm_content=business&cmpid=socialflow-twitter-business&utm_medium=social\">Bloomberg<\/a> both covered the story.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Eni signs agreement to supply more of our LNG to Italy, Europe: The Italian energy firm yesterday signed an agreement in Cairo with the state-owned Egyptian Natural Gas Holding Company (EGAS) designed to \u201cmaximize\u201d Egyptian LNG exports to Europe and boost Eni\u2019s gas production here, according to a cabinet statement. \u201cThe agreement aims to promote [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":545857,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7207],"tags":[1708,7135,93,197,72,336,91,1095],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-545856","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","tag-damietta-plant","tag-egas","tag-energy","tag-eni","tag-enterpriseam","tag-italy","tag-oil-and-gas","tag-russia-ukraine-war","wpautop","entry"],"acf":{"mongo_id":"3447a945-6e65-40df-be0e-8cb09f5d1167","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2022\/4\/242.jpg","photo_position":"above","related_issue":[545852],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - 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Eni could establish 10 GW of renewable energy projects in Egypt \u201cin the forthcoming years,\u201d the Italian energy giant said in a statement yesterday. The company\u2019s CEO, Claudio Descalzi, \u201cagreed on the opportunity to implement\u201d the solar and wind projects during\u2026","rel":"","context":"In &quot;Energy&quot;","block_context":{"text":"Energy","link":"https:\/\/enterpriseam.com\/egypt\/category\/industries\/energy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/8\/447.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":567858,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/12\/09\/damietta-lng-exports-could-be-ready-by-1q2021\/","url_meta":{"origin":545856,"position":2},"title":"Damietta LNG exports could be ready by 1Q2021","author":"enterpriseam admin","date":"9 December 2020","format":false,"excerpt":"We could be seeing our first LNG exports out of Damietta by 1Q2021, soon after Eni and its state-owned partners the Egyptian Natural Gas Holding Company (EGAS) and the Egyptian General Petroleum Company (EGPC) reopen the long-dormant terminal, Youm7 reports, citing unnamed officials in the oil industry. An agreement reached\u2026","rel":"","context":"In &quot;Energy&quot;","block_context":{"text":"Energy","link":"https:\/\/enterpriseam.com\/egypt\/category\/industries\/energy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/12\/174.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":567642,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/12\/02\/damietta-lng-plant-could-reopen-in-1q-boosting-our-east-med-hub-ambitions\/","url_meta":{"origin":545856,"position":3},"title":"Damietta LNG plant could reopen in 1Q, boosting our East Med hub ambitions","author":"enterpriseam admin","date":"2 December 2020","format":false,"excerpt":"Damietta LNG plant could reopen early next year after Eni, Naturgy seal agreement: Italian energy giant Eni has reached an agreement with the Egyptian government and its Union Fenosa Gas (UFG) partner Naturgy to finally re-open the Damietta LNG plant by the end of 1Q2021 after an eight-year hiatus, Eni\u2026","rel":"","context":"In &quot;Energy&quot;","block_context":{"text":"Energy","link":"https:\/\/enterpriseam.com\/egypt\/category\/industries\/energy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/12\/42.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":608953,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/10\/29\/eni-says-it-will-soon-resume-lng-exports-from-egypt-plus-another-china-energy-project-in-the-works\/","url_meta":{"origin":545856,"position":4},"title":"Eni says it will soon resume LNG exports from Egypt. 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