Egypt’s Egyptian Natural Gas Holding Company (EGAS) is in discussions with Italy’s energy major ENI over a $2 billion investment aimed at enhancing production from the Zohr offshore gas field, one of the Mediterranean’s largest gas discoveries.
According to a media report citing government sources, the proposed investment would cover the construction of an offshore processing unit and a new onshore water treatment plant to handle associated water from Zohr’s production stream. These facilities are expected to significantly improve operational efficiency and reduce production losses.
If implemented, the project is projected to increase Zohr’s gas output by around 200 million cubic feet per day by 2028, using the same wells that are currently in operation. In addition to boosting daily production, the upgrades could add approximately one trillion cubic feet of natural gas to Zohr’s recoverable reserves, which are currently estimated at about 21 trillion cubic feet.
Discovered in 2015, the Zohr gas field began production in December 2017 with four connected wells delivering a combined capacity of 800 million cubic feet per day. Output later peaked at 3.2 billion cubic feet per day in 2022, before declining in subsequent years amid natural reservoir depletion and operational constraints.
Production fell to 2.4 billion cubic feet per day in 2023, dropped further to about 1.9 billion cubic feet in 2024, and reached roughly 1.25 billion cubic feet per day by mid-2025, highlighting the need for new infrastructure to stabilise and restore output.
The talks reflect Egypt’s broader strategy to revitalise domestic gas production, strengthen energy security, and maximise the long-term value of its flagship gas assets, with Zohr remaining central to the country’s upstream gas portfolio.