Eni, Italian Oil and Gas Giant Set to Execute 10-GW Solar, Wind Power Projects in Egypt

Eni SpA (BIT: ENI), one of Italy’s leading oil and gas companies, is planning to build solar and wind power projects with a total capacity of 10 GW in Egypt over the next few years, according to a statement released earlier this week.

Claudio Descalzi, Eni’s CEO, made the announcement following a meeting with Egypt’s President, Abdel Fattah El-Sisi, Prime Minister Mustafa Madbouly, and Minister of Petroleum and Mineral Resources, Tarek El-Molla.

Claudio Descalzi, the company’s CEO, “agreed on the opportunity to implement” the solar and wind projects during a meeting with President Abdel Fattah El Sisi, according to the statement, without providing further details.

The main topic of the discussions was natural gas production and LNG exports. Eni produces 60% of the total gas in the North African country, which aspires to become a regional gas hub, with an annual natural gas output of 538 billion cubic feet.

Eni operates in Egypt through its subsidiary IEOC, producing approximately 350,000 barrels of oil equivalent per day. In 2021, the Italian company agreed to study the feasibility of projects for establishing a green hydrogen plant with the Egyptian Electricity Holding Company (EEHC) and the Egyptian Natural Gas Holding Company (EGAS), as well as to work on a small-scale carbon capture pilot project.

The announcement came barely four months after the two parties signed an agreement to increase Egypt’s gas exports to Europe, increase exploration efforts and raise production.

BACKGROUND

This comes as Europe seeks to source more of its energy from the MENA region, after withdrawing from Russia due to the current hostility between Russia and the West following Russia’s invasion of Ukraine earlier this year. Members of the European Union and the United Kingdom are looking to buy more electricity from North Africa and natural gas from Egypt and Israel to reduce their reliance on Moscow in the short and long term.

When this project finally comes on stream, it will intensify the Egyptian government’s effort in the clean energy transition that it has been pursuing vigorously in recent times.