ENI to Build $180 Million Gas Processing Plant in Egypt to Boost Output

Italian energy major ENI is preparing to deepen its footprint in Egypt with a plan to construct a new natural gas processing plant in the company’s onshore Meleiha concession in the Western Desert, according to a senior government official familiar with the project.

The investment, valued at $180 million, is designed to handle up to 100 million cubic feet of gas per day, reinforcing Egypt’s strategy to expand domestic production at a time when the country faces a widening gap between supply and demand.

The official, who spoke on condition of anonymity due to the sensitivity of the information, said the project aims to add around 80 million cubic feet per day of new output by September, ahead of the plant’s full commissioning expected next year. 

The work will be executed by Ajeeb Petroleum Company (Agiba), a joint venture between ENI and Egypt’s state-owned EGPC, in partnership with Petrojet and the U.S.-based Schlumberger.

Gas processing facilities are a core component of Egypt's natural gas value chain, responsible for stripping out water, condensates, and impurities before the gas enters the national grid or is prepared for export. According to the official, the new plant will improve recovery rates, reduce losses, and enhance the efficiency of Western Desert fields, an area that has become increasingly important as Egypt seeks to stabilize its energy landscape.

“This project will significantly improve utilization of existing reserves and help limit wastage,” the official said, noting that the facility forms part of a broader government–industry campaign to upgrade infrastructure across Egypt’s upstream sector.

Beyond the processing plant itself, ENI also intends to construct a new internal pipeline to transport gas from Meleiha’s production zones and connect it to the Northern line within the concession. The expansion is expected to strengthen the region’s logistical backbone and streamline the flow of processed gas across the Western Desert network.

ENI has been steadily scaling up operations in the area since launching official production from the Meleiha field in April 2022, initially at 8,500 barrels of oil equivalent per day.

The Ministry of Petroleum and Mineral Resources plans to complete five new gas projects in the next fiscal year, with a combined investment of $1.6 billion. To lure foreign partners, the government recently introduced a package of incentives, including allowing companies to export part of their new output and use the proceeds to settle outstanding arrears, in addition to offering higher prices for incremental gas production.