Italian energy giant ENI announces gas discovery off Egypt coast

Egypt and Italian energy giant ENI announced on Tuesday a "significant" natural gas discovery off Egypt's Mediterranean coast, as the North African country struggles to secure its energy needs due to the US and Israel's war with Iran.

ENI made the discovery with the drilling of the Denise W exploration well, located about 70 kilometres offshore in the Eastern Mediterranean Temsah oil and gas field.

"Preliminary estimates indicate about 2 trillion cubic feet of gas" in the Temsah concession, the company said in a statement.

Egypt's petroleum ministry said the discovery includes "130 million barrels of petroleum condensates" and is part of a slate of policies to "support increased production, offset natural decline and reduce the import bill".

Egypt's natural gas supplies from Qatar and Israel have been significantly disrupted due to the Middle East war, leading Cairo to enact energy-saving measures including a business curfew, raising fuel prices and slowing government projects.

Prime Minister Mostafa Madbouly said last month the war had nearly tripled the country's natural gas import bill, from $560 million to $1.65 billion per month.

The petroleum ministry said the Denise W well is now being prepared for testing, after which more wells will be drilled and an offshore production platform built, before the well can be brought online.

Last month, Egypt announced another new discovery, with Apache Corporation, in its Western Desert, which the petroleum ministry said would yield 26 million cubic feet per day.

Egypt has struggled with energy supplies in recent years, having sought to both meet its domestic needs and position itself as a regional energy hub.

In 2015, the discovery of the Zohr field off Egypt's coast, the Mediterranean's largest gas field holding an estimated 30 trillion cubic feet, raised hopes Egypt would become self-sufficient and a major gas exporter.

But in recent years Egypt has pivoted to position itself as a processing and export hub, using Egyptian liquefaction terminals to route offshore gas from other countries including Cyprus.