Melieha Gas Plant Phase 2 Begins, Boosting Egypt's Automotive Industry

Egypt's Melieha gas plant in the Western Desert has entered a new phase with the start-up of its second stage, designed to produce 100 million standard cubic feet per day. The move supports energy supplies needed to run factories, including automotive plants, and strengthens the energy system that keeps vehicles moving on the country's roads.

Eni Partnership Drives Production Growth

Eni announced, through its joint venture Agiba Petroleum Company with the Egyptian General Petroleum Corporation, the launch of start-up activities for the second phase of the Melieha project. The development aims to build a new gas processing hub within the Melieha integrated concession area and increase processing capacity for gas produced from the region's fields, all according to the highest standards of operational excellence, safety, and environmental sustainability. This step supports domestic production growth and maximizes the use of Egypt's energy resources.

New Infrastructure for Gas Export

The second phase includes development wells, production gathering networks. Main transport pipelines, along with a new dedicated gas export line. This line connects new production to Egypt's existing gas infrastructure, accelerates economic returns from resources, and enhances operational efficiency. The numbers speak for themselves: 100 million standard cubic feet per day will be added to the national grid.

Eni as a Strategic Energy Partner

Eni stands as a strategic partner for Egypt in supporting energy security through the development of Western Desert resources, one of the promising areas in Egypt's energy sector. The company has operated in Egypt since 1954 and is the country's largest energy producer, with hydrocarbon output reaching about 242 thousand barrels of oil equivalent per day on an equity basis during 2025.

Direct Impact on Automotive Plants

What does this mean for the automotive sector? Increased natural gas supplies support factories that rely on energy for production, including vehicle assembly plants. Improved energy infrastructure also stabilizes operating costs, a critical factor in attracting industrial investment. The Egyptian market needs strong energy infrastructure to support local manufacturing expansion plans.

Future Outlook

With the second phase now operational, Egypt's capacity to meet rising gas demand across industrial and residential sectors increases. The new gas export line enhances the national grid's flexibility and allows additional production volumes to be integrated without bottlenecks. This step reinforces Egypt's position as a regional energy hub and supports industrial development plans that include the automotive industry and its components.