In an effort to boost energy production, Italian energy group Eni will invest around $26.24 billion in energy projects across Algeria, Libya, and Egypt over the next 4 years, CEO Claduio Descalzi said on 8 April at an energy conference in Ravenna, Italy, according to Reuters.
While the three north African countries could play an important role as hydrocarbon suppliers for Europe, they need greater outside investment to expand their energy output and meet rising domestic demand, said Descalzi.
“Internal demand in these countries—because of demographic growth—is increasing at about 7 to 8% every year, this means they need gas ... they need investment,” he said.
Over the next 4 years, Eni will invest nearly $9 billion in both Algeria and Libya, and close to that same amount in Egypt, he added.
The investments align with the Italian government's Mattei Plan, which aims to transform Italy into an energy hub as Europe reduces its reliance on Russian gas. Part of that plan is to strengthen its political relationships within Africa.
The prospect of billions in new spending may prove to be a reset for Egypt which had pegged its hopes on becoming an exporter after Eni discovered the Zohr offshore gas field in 2015. Instead, the county’s gas production tumbled to a 6-year low in 2024 which has Egypt seeking outside supplies to fill its downstream capacity.
Eni and TotalEnergies recently signed a deal with Cyprus and Egypt to transport gas from the Cyprus-controlled Cronos field to the Zohr facility for processing, with volumes then headed to Egypt’s Damietta liquified natural gas plant for European export.
