Libya targets gas output growth, eyes larger role in Europe

Libya plans to raise natural gas production to 1 billion cubic feet per day by the early 2030s and position itself as an alternative gas supplier to Europe, the head of National Oil Corporation of Libya Masoud Suleiman said.

Proven gas reserves in the country are estimated at nearly 2 trillion cubic metres, he said, adding that the plan would effectively double current output.

Libyan gas is currently exported to Europe via the GreenStream subsea pipeline linking Libya to Italy, operated by Italy’s Eni.

Libya is preparing to announce the results of a new international licensing round, with interest from companies including Chevron, ConocoPhillips, Repsol and Turkey’s state energy firm TPAO.

Turkey has proposed shipping Libyan gas to Italy via GreenStream, followed by swap arrangements using Azerbaijani gas delivered through the Trans Adriatic Pipeline (TAP). The TAP consortium, however, said such a mechanism is not under consideration, citing long-term contracts running until 2045.

Market sources said any significant increase in Libyan gas exports would likely materialise only over the longer term.

N.Tebrizli