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Libya Starts Trial Run of Gas Pipeline, NOC Pushes Export Growth

  • New pipeline to recover 150 million cubic feet of gas daily through reduced flaring
  • Recent discoveries and new concessions signal push for ​foreign investment despite instability

CAIRO, April 14 (Reuters) - Libya’s National Oil Corporation (NOC) ‌has begun trial operation of a long-delayed gas pipeline aimed at easing production bottlenecks and supporting future exports, the company said late on Monday.

The ​North African country, the continent's second-largest oil producer and a ​member of OPEC, relies heavily on hydrocarbons, but its ⁠ability to attract foreign investment and expand output has been ​hampered by years of political and economic turmoil since 2011.

In recent ​months, NOC has sought to reverse that trend, announcing new oil and gas discoveries and awarding exploration blocks in its first licensing round since 2007, signalling a ​renewed push to bring in international partners as the nation looks ​to boost production to 1 billion standard cubic feet per day and raise exports ‌to ⁠Europe by the early 2030s.

The new 42-inch pipeline links the Intisar A/103 field to the Brega gas distribution network over about 130 km (80 miles). NOC said it would enable the recovery of ​about 150 million ​cubic feet of ⁠gas per day that had previously been flared, boosting supplies to domestic consumers and freeing up ​volumes for export.

Libya holds an estimated 80 trillion ​cubic feet ⁠of gas reserves, but exports via the Greenstream pipeline to Italy remain limited.

NOC said the project, which had been stalled for about ⁠16 ​years, would also eliminate “back pressure” that had ​disrupted operations and forced some fields to shut down, improving overall efficiency across the ​gas network.

Reporting by Ayman al-Werfali Writing by Mohamed Ezz Editing by David Goodman

Source: Reuters


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