Italian energy giant Eni has announced plans to invest approximately €24 billion ($26.24 billion) in Algeria, Libya, and Egypt over the next four years to enhance energy production and meet growing domestic demand.
The investment, revealed by CEO Claudio Descalzi at an energy conference in Ravenna, Italy, underscores Eni’s commitment to strengthening North Africa’s role as a key hydrocarbon supplier for Europe.
“Internal demand in these countries, because of demographic growth, is increasing at about 7%-8% every year… this means they need gas, they need investment.”
Claudio Descalzi, CEO of Eni
He noted that external investment is crucial to expanding production capacity and ensuring energy security in the region.
The company aims to modernize infrastructure, boost exploration efforts, and improve production efficiency in these nations, reinforcing their strategic importance in Europe’s energy supply chain.
Egypt, once hailed as an emerging energy hub following Eni’s monumental discovery of the Zohr offshore gas field in 2015, has seen a steady decline in domestic gas output since 2021.
In 2024, Egypt’s gas production hit a six-year low, driven by maturing fields and lagging investments.
However, hope remains high for a resurgence. Earlier this year, Egypt and Cyprus inked an agreement to develop and export gas from Cyprus’ offshore fields through Egypt.
Under the deal, Eni will process the gas in Egypt’s liquefaction plants before re-exporting it to European markets. The agreement positions Egypt as a regional energy processing hub and supports Eni’s long-term export strategy.
Eni has also committed to injecting more than €8 billion each into Algeria and Libya. Both countries have long-standing partnerships with the Italian energy firm, but their energy sectors have faced challenges due to political instability and underinvestment.
Algeria, with its vast gas reserves and proximity to Europe via the TransMed pipeline, is already one of Italy’s largest gas suppliers. Libya, despite its political volatility, remains critical to Eni’s upstream operations in Africa.
“The goal is to ensure reliability in supply chains, both for domestic use and for export to Europe.”
Claudio Descalzi, CEO of Eni
Italy’s Energy Strategy
The massive investment plan aligns with Italy’s broader geopolitical vision under the Mattei Plan — an initiative named after Eni’s founder, Enrico Mattei, who championed equitable energy partnerships with Africa in the 1950s and 60s.
The current government has revived the strategy to strengthen economic and political ties with the African continent.
The Mattei Plan aims to reposition Italy as a bridge between Africa and Europe, helping to manage migration, drive infrastructure development, and secure critical resources, including energy.
Beyond boosting European energy security, Eni’s investments are expected to bring substantial benefits to the local economies of Algeria, Libya, and Egypt.
Eni’s €24 billion commitment to North Africa marks one of the most ambitious energy investment plans in the region’s recent history.
As Europe continues to diversify its energy sources and bolster its resilience to external shocks, partnerships with nearby regions like North Africa will be pivotal.
With robust infrastructure plans, strategic alignment with national and EU policies, and long-standing presence in the region, Eni appears well-positioned to deliver both energy security for Europe and economic development for its African partners.
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