A memorandum of understanding (MoU) was agreed with Egyptian Natural Gas Holding Company and Egyptian Electricity Holding Company, Eni announced on 8 April.

Under the agreement, Eni will carry out a feasibility study into the application of new technology to increase power generation efficiency and reduce natural gas consumption.

“The application of technologies envisaged by the MoU will lead to energy savings of more than 20 per cent and bring significant environmental benefits,” said the announcement.

Eni is a major player in the Egyptian oil and gas sector, where it produced about 240,000 barrels of oil equivalent a day in 2007.

Its EniPower subsidiary manages power generation facilities in Italy, with total output of 4.5 gigawatts.