10 fascinating facts about Egypt and Eni’s $150M LNG terminal plans

Egypt and Italian energy giant Eni are exploring a new liquefied natural gas (LNG) import terminal in Damietta. With energy demand rising and domestic production declining, the project reflects Egypt’s evolving strategy to secure its energy future. Here are ten key facts about this exciting development:

Egypt and Eni are in discussions to establish a $150 million LNG import terminal on the Mediterranean coast in Damietta. This terminal will play a critical role in addressing the country's increasing energy needs.

In 2024, Egypt's LNG exports fell dramatically by 84 percent, dropping from 3.38 million tons in 2023 to just 0.54 million tons. This steep decline was caused by domestic gas shortages, rising electricity consumption, and industrial growth.

For the first time since achieving gas self-sufficiency in 2018, Egypt resumed importing LNG in May 2024, importing 2.5 million tons throughout the year.

Eni has been a major player in Egypt’s energy sector since its discovery of the Zohr gas field in 2015, one of the largest natural gas fields in the Mediterranean. This field was instrumental in helping Egypt achieve gas self-sufficiency by 2018.

Eni resumed drilling at the Zohr field in late 2024 after a three-year pause. Advanced drilling technologies will be deployed to stabilize and boost production, aligning with Egypt’s urgent energy needs.

Egypt’s domestic gas production has been steadily dropping. By May 2024, production was 30 percent below its peak in March 2021, according to the Joint Organizations Data Initiative (JODI).

In response to energy challenges, Egypt is increasing its reliance on renewable energy. The government has set an ambitious goal to generate 58 percent of its electricity from renewable sources, up from the current 20 percent.

To diversify its energy mix further, Egypt has signed seven memoranda of understanding (MoUs) for green hydrogen projects worth $40 billion. These projects aim to position Egypt as a leader in clean energy.

ExxonMobil recently announced natural gas discoveries in Egypt's Mediterranean waters, bolstering the country’s exploration potential. After a farm-in agreement with Qatar Energy, ExxonMobil now holds a 60 percent stake in these exploratory blocks.

In 2023, Eni pledged to invest $7.7 billion in Egypt over four years to enhance exploration and production activities, reaffirming its long-term commitment to the region.

The proposed LNG terminal in Damietta highlights Egypt’s proactive approach to tackling energy challenges. By leveraging partnerships with global energy leaders like Eni and focusing on renewable technologies, Egypt is charting a path toward a more sustainable and secure energy future.