Italy’s Eni to Invest $26 Billion in North Africa to Boost Energy Output
Italian energy giant Eni has announced plans to invest approximately €24 billion ($26.24 billion) over the next four years in Algeria, Libya, and Egypt, aiming to strengthen energy production across the region. The announcement was made by CEO Claudio Descalzi during an energy conference in Ravenna, Italy.
This substantial investment aligns with the Italian government’s broader Mattei Plan, an initiative to renew and deepen economic and political partnerships with Africa. Eni, already a key foreign player in North Africa’s energy landscape, is expected to play a central role in advancing this strategy.
Descalzi emphasized that Algeria, Libya, and Egypt are well-positioned to serve as critical hydrocarbon suppliers to Europe, but require foreign investment to meet both growing domestic energy demand and broader export potential.
“Internal demand in these countries is rising by 7–8% annually due to demographic growth,” Descalzi said. “They need gas—and they need investment.”
According to Descalzi, Eni will allocate over €8 billion to each of the three countries—Algeria, Libya, and Egypt—through 2028. This targeted funding will support both infrastructure development and energy production increases.
In Egypt, where Eni discovered the Zohr offshore gas field in 2015, ambitions to become a major gas exporter have been challenged by a steady decline in domestic gas output since 2021. Production levels hit a six-year low in 2024.
To help counter this trend, Egypt and Cyprus signed an agreement earlier this year to process natural gas from Cyprus's offshore fields in Egyptian facilities. The gas, exported by Eni, will be liquefied in Egypt and re-exported to Europe, bolstering the region's energy ties with the EU.
Eni’s latest investment plan reinforces Italy’s broader ambitions to position itself as a strategic energy bridge between Europe and Africa, while also supporting energy security and diversification for the European continent.
Source: Reuters
