Eni starts up second phase of Meleiha project with processing capacity of 100 million cubic feet a day
Key Facts
Italy's Eni announced in October that it had begun startup activities for the second phase of the Meleiha project in Egypt's Western Desert, with a maximum design gas processing capacity of 100 million standard cubic feet a day. The project is being implemented through Agiba Petroleum, a joint venture between Eni and the Egyptian General Petroleum Corporation, according to a statement from the Italian company. The project marks a step towards developing a new gas hub within the merged Meleiha concession. It aims to connect new production to existing infrastructure and increase gas availability for the domestic market. This comes as the petroleum ministry links higher domestic production to reducing the gas import bill and meeting Egyptian market demand.
The petroleum ministry had said in an August statement that it expected the Meleiha gas plant to enter service the following month. In September, it then announced a target of adding about 80 million cubic feet a day from the Meleiha fields before the end of the month, following completion of the processing plant's second phase. Eni's announcement that startup activities began in October comes after the ministry's target date. The ministry had previously announced that Agiba's gas production capacity in the Western Desert had reached 80 million cubic feet a day. That earlier announcement concerned Agiba's production capacity, while the September target concerned additional production from the Meleiha fields.
The second-phase project includes development wells and gas gathering systems, according to Eni. It also includes trunklines and a new dedicated gas transportation pipeline as part of the project's associated infrastructure. The announcement of the Meleiha and Meleiha Deep concession agreement had stipulated that the new gas processing plant would be connected to the Western Desert Gas Complex in Alexandria. The agreement included an extension of the concession until 2036, with the possibility of a further extension to 2041. Operationally, Eni said the Meleiha project had helped achieve "zero routine gas flaring" at its operations in Egypt ahead of schedule, as part of the project outcomes the company outlined for its activities in the country.
In its planned budget for the next fiscal year, outlined in a petroleum ministry statement, Agiba is targeting investments of about $509 million. The company's targets include daily oil production of 38 thousand barrels, according to the statement. It also aims to produce 125 million cubic feet of gas a day under the same budget. Across the sector, the ministry announced in August an increase of about 20% in exploration and production activity during 2026. The petroleum minister attributed improved investor confidence to the settlement of amounts owed to partners and investment incentives, saying that "payment of outstanding dues and incentives have strengthened investor confidence," as part of efforts to stimulate exploration and production.
Eni has operated in Egypt since 1954, according to the Italian company, whose activities in the country span oil and gas production. Its production in Egypt amounted to about 242 thousand barrels of oil equivalent a day during 2025, calculated on the basis of its share of production. In its offshore operations, the company announced the Denis West discovery and estimated gas initially in place in its reservoir at about 2 trillion cubic feet. This estimate concerns the volume of gas in the reservoir at the time the discovery was announced, rather than recoverable reserves. The startup of Meleiha's second phase adds to the company's activity in Egypt's gas sector through its Agiba joint venture.
The petroleum ministry frames increased domestic gas production as part of its goal of "reducing the gas import bill and meeting domestic needs." The Meleiha project aims to increase gas availability for the domestic market by connecting new production to existing infrastructure. The new facility's maximum design capacity is 100 million standard cubic feet a day, compared with the ministry's targeted production addition from the fields of about 80 million cubic feet a day. On upcoming disclosures, Eni plans to publish its third-quarter results on 23 October 2026, according to its financial calendar. The company is scheduled to hold its earnings conference call on the same day.