Eni Plans €24B Investment in North Africa Energy Production

Eni, the Italian energy group, plans to invest approximately €24 billion ($26.24 billion) over the next four years in Algeria, Libya, and Egypt to enhance energy production, according to CEO Claudio Descalzi. This investment aligns with the Italian government's Mattei Plan aimed at strengthening economic and political ties with Africa. Descalzi emphasized that these countries have the potential to serve as key hydrocarbon suppliers for Europe, but require significant external investment to meet increasing domestic energy demands, which are growing at around 7-8% annually due to demographic changes. Each country is set to receive around €8 billion, with Eni focusing on reversing a decline in domestic gas production that has affected Egypt since 2021. Additionally, a deal between Egypt and Cyprus allows for the processing and export of Cypriot gas through Egypt's infrastructure to Europe, further integrating the region's energy supply chains. Eni's role as a major foreign investor positions it as a pivotal player in North Africa's energy sector.