With an investment of $180 million.. Italian company "Eni" intends to establish a gas processing plant in Egypt

SadaNews - The Italian company "Eni" is seeking to enhance its presence in the Egyptian market by establishing a new gas processing plant in its Maliha land concession in the Western Desert, at a cost of $180 million, with a capacity of up to 100 million cubic feet per day, according to a government official to "Asharq".

The official, who requested anonymity due to the sensitivity of the information, explained that the company aims to add about 80 million cubic feet per day to Egypt's gas production by next September, as part of a plan to boost production from the Maliha fields before the new plant is expected to start operating next year. The project will be executed by the government-owned "Agiba Petroleum" in partnership with "Petrojet" and the American "Schlumberger".

"Eni" has not responded to requests from Asharq for comment.

Gas processing plants are a crucial component of the natural gas production system; these facilities work to separate water, condensates, and impurities, and enhance the quality of gas before injecting it into the national grid or directing it for export, as the official explains. He adds that these plants contribute to increasing the efficiency of using the producing fields and reducing losses, which supports Egypt's efforts to enhance its local gas production and narrow the gap between production and consumption.

Infrastructure Development in Maliha

The official also revealed to "Asharq" that "Eni" aims to construct a new pipeline for transporting gas within the concession, connecting it to the northern line in the Maliha area, aiming to enhance the infrastructure for the processing and transportation of gas in the Western Desert.

The Italian company had officially begun production from the Maliha field in April 2022, with an initial capacity of 8,500 barrels of oil equivalent per day.

The Ministry of Petroleum and Mineral Resources plans, in cooperation with foreign companies, to complete five new gas projects during the next fiscal year with investments amounting to $1.6 billion. The government has provided additional incentives, including allowing the export of a portion of the new production and using the revenues to settle overdue payments, along with increasing the price of gas from the new production.

Egypt's current natural gas production is estimated at about 4.2 billion cubic feet per day, compared to a domestic demand reaching 6.2 billion cubic feet per day, highlighting the importance of new projects to bridge the increasing gap between production and consumption.