Zohr expansion, new wells with Eni remain on track: EGAS

Ahram Online , Monday 26 Jan 2026

The Egyptian Natural Gas Holding Company (EGAS) stated on Sunday that expansion plans for the Zohr gas field and the drilling of two new wells, worth a combined $360 million, are continuing as planned in partnership with Italian energy firm Eni.

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EGAS rejected a report by an Arabic-language international outlet that claimed the expansion had been postponed and drilling suspended, describing the information as false.

The company also denied claims of a dispute with Eni over an alleged increase in the gas purchase price for Zohr production. The report said Eni had raised the price by 54 percent to more than $10 per million British thermal units (MMBtu), compared with a typical range of $5.7–6.5 per MMBtu, citing higher operating costs. EGAS said the claim was inaccurate, adding that both companies are considering legal action over the report.

The Zohr field, which began production in 2017, was a key driver of Egypt’s transition to a net natural gas exporter. Output peaked at about 2.8 billion cubic feet per day (bcf/d) in the third quarter of 2021.

Production later declined after technical issues related to water filtration and a slowdown in drilling, linked to Egypt’s delayed payments to Eni. By the first half of 2024, output had fallen below 2 bcf/d, as Egypt accumulated arrears of around $6.4 billion to international oil and gas companies.

Despite the setbacks, Eni said in 2023 it would invest $7.7 billion in Egypt over four years to boost exploration and production. Drilling at Zohr resumed in early 2025, and by June, the field’s output had risen by about 60 million cubic feet per day.

Drilling at the Zohr-13 well began during the year and is expected to add around 55 million cubic feet per day. By October 2025, drilling at the Zohr-9 well had been completed, with expected production of up to 70 million cubic feet per day.

In November 2025, Eni announced plans to invest a further $8 billion in Egypt over the next five years to expand existing fields and pursue new exploration.

As of January 2026, Zohr is producing about 1.2 bcf/d, contributing to total national output of roughly 6 bcf/d. Production remains slightly below domestic demand, estimated at 6.3–6.4 bcf/d, after local gas consumption rose by an average of 14 percent in 2024, driven mainly by electricity demand during an exceptionally hot summer.

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