Italian industrial gas company Eni has signed an agreement with Egyptian gas exploration licence company EGAS to advance gas production and liquefied natural gas (LNG) exports from Egypt to Europe, with a focus on Italy.

To help promote a transition to a low carbon economy, the deal will see the partners valorise Egyptian gas reserve by increasing jointly operated gas activities and identifying opportunities to maximise short-term gas production. 

Eni will also look to maximise the potential of current exploration campaigns, in addition to exploring newly acquired acreage in surrounding geographies. 

Combined with an agreement signed for the restart of Damietta liquefaction plant last year, Eni’s LNG portfolio bound for Europe and Italy will consist of volumes up to 3 bcm (billion cubic metres) this year. 

The scheme is part of an effort to help decarbonise Egypt’s energy sector with the goal of reaching net-zero by 2050.