Eni, EGPC Start Up 100-MMcfd Meleiha Phase 2 Gas Project in Egypt

By James Calloway

Agiba Petroleum Co. has begun startup activities at Meleiha Phase 2, a gas processing installation rated at 100 MMcfd in Egypt's Western Desert, Eni said in an Oct. 20 release.

Agiba — a 50-50 joint venture of Eni SpA subsidiary IEOC Production BV and Egyptian General Petroleum Corp. (EGPC) — operates the Merged Meleiha concession and is building the plant as the core of a new gas hub designed to lift processing capacity for the area's natural gas fields and support growth of Egypt's domestic output.

For operators watching Egypt's gas balance, the number that matters is the 100 MMcfd of processing capacity. That volume feeds directly into a national grid that needs every cubic foot it can get, and the project's purpose, in Eni's words, is to "enable the rapid monetization of Egypt's natural resources and enhanced operational efficiency."

What infrastructure does Phase 2 include?

The scope covers the full chain from wellhead to export point:

• Development wells inside the Merged Meleiha concession
• Gathering systems and trunklines
• A dedicated gas-export pipeline tying new production into Egypt's existing gas network

Eni did not disclose a schedule for completing full startup and commissioning. That gap leaves open the question of when the full 100 MMcfd will actually reach the grid — the watch item for anyone tracking Egyptian supply forecasts.

The takeaway: Meleiha Phase 2 is a sanctioned, under-construction project with hardware on site and startup underway, not an appraisal-stage concept.

What lies behind the hub?

The Phase 2 plant builds on a drilling campaign with a documented track record in the concession. In April 2022, Eni reported that three discoveries in the Meleiha concessions had been tied into production, adding an estimated 8,500 boe/d:

• Nada E Deep 1X: 60 m of net hydrocarbon pay in the Alam El Bueib and Khatatba formations
• Meleiha SE Deep 1X: 30 m in the Matruh and Khatatba formations
• Emry Deep 21: 35 m in Alam El Bueib

Counting discoveries made in 2021, Eni put the exploration total at eight wells with a 75% success rate.

That success rate is the quiet story here. A three-in-four hit rate in the Western Desert explains why Agiba is scaling up centralized processing rather than relying on scattered satellite facilities — the geology keeps delivering, and the hub model captures it faster.

The takeaway: the hub rests on proven, already-producing discoveries, not speculative acreage.

Who holds what?

Agiba operates the Meleiha concession with a 76% interest. Lukoil PJSC holds the remaining 24%, according to Eni's website. The joint-venture structure puts EGPC and Eni's IEOC on an equal footing above the concession level.

For service companies and suppliers, that means contractual counterparties run through Agiba rather than Eni's Egypt branch directly — a distinction worth noting when bidding cycles open.

The takeaway: one operator, two shareholders at the JV level, one Russian minority partner at the concession level.

What comes next?

The open item is timing. Eni has confirmed startup activities have begun but has not published a commissioning date for full rates, nor has it specified how many development wells Phase 2 will ultimately carry or their initial production profile.

Watch for the commissioning schedule and first gas at nameplate capacity — those two data points will determine how much of the 100 MMcfd lands in Egypt's domestic supply equation, and when.