Wednesday, April 8, 2026 - Egypt and ENI have announced a “significant” natural gas discovery in the Eastern Mediterranean, offering potential relief as the country faces energy supply pressures linked to regional conflict.

According to the announcement, preliminary estimates suggest the Temsah oil and gas field holds around 2 trillion cubic feet of natural gas, alongside approximately 130 million barrels of petroleum condensates. Egypt’s petroleum ministry said the discovery forms part of broader efforts to boost domestic production, offset declining output, and reduce reliance on costly imports.

The development comes as Egypt grapples with disruptions to gas supplies from Qatar and Israel, following the ongoing conflict involving Iran. These disruptions have forced Cairo to implement energy-saving measures, including business curfews, fuel price increases, and delays to government projects.

Prime Minister Mostafa Madbouly recently stated that the country’s monthly gas import bill has surged from $560 million to $1.65 billion as a result of the crisis.

The petroleum ministry confirmed that the Denise W well is currently being prepared for testing. Further drilling is planned, along with the construction of an offshore production platform, before the field can begin full operations.

This discovery follows another recent find in Egypt’s Western Desert in partnership with Apache Corporation, which is expected to produce about 26 million cubic feet of gas per day.

Egypt has faced ongoing challenges in balancing domestic energy demand with its ambitions to become a regional energy hub. The discovery of the Zohr gas field in 2015, estimated to hold around 30 trillion cubic feet of gas, had raised expectations of energy self-sufficiency and increased exports.

In recent years, however, Egypt has shifted strategy toward becoming a processing and export hub, using its liquefaction facilities to handle gas from neighboring countries such as Cyprus. The latest discovery is expected to support these goals while helping to stabilise Egypt’s domestic energy supply amid ongoing regional uncertainty.