Libya’s Gas Megaproject Revived to Combat Urgent Power Crisis

URGENT UPDATE: Libya’s state-run energy company is moving swiftly to address critical electricity shortages by reviving a multibillion-dollar natural gas project. The National Oil Corp (NOC) has proposed that its subsidiary, the Arabian Gulf Oil Company (AGOC), develop discovered gas deposits in the NC-7 block, marking a significant effort to stabilize the country’s energy supply.

This proposal, aimed at alleviating the nation’s power crisis, has the potential to impact not only the capital region of Tripoli but also the eastern administration in Benghazi, which has long felt marginalized in energy revenue distribution. According to a letter from the NOC to Prime Minister Abdul Hamid Dbeibah, the project could involve partnerships with major international energy firms, including Eni SpA, TotalEnergies SE, Abu Dhabi National Oil Co., and Turkish Petroleum Corp.

With Libya’s gas resources estimated at around 53 trillion cubic feet, this project is crucial for meeting both local demand and export commitments. The proposed new company, named Jelyana, will be headquartered in Benghazi, a decision that could appease the eastern administration that has often complained of inequitable energy revenue sharing.

The NOC’s push for this megaproject comes as Libya grapples with a dire energy situation, relying heavily on fuel imports to meet electricity needs despite its rich oil reserves. NOC Chairman Masoud Suleman emphasized the urgency of tapping new sources by the end of 2026 to avoid costly fuel imports and meet growing industrial demands for power.

Previously, a similar initiative to develop NC-7 stalled in 2023 due to objections regarding profit-sharing with foreign companies, which local authorities deemed excessive. However, there is currently no sign of the opposition that previously hindered progress, suggesting a favorable environment for the NOC’s latest proposal.

As the energy landscape in Libya evolves, the ongoing conflict and rivalry between the western and eastern governments remain pivotal. Libya’s oil production, exceeding 1 million barrels per day, has faced disruptions due to these tensions, impacting the nation’s economy and energy security.

The revival of the NC-7 project presents not only an opportunity for immediate relief from power shortages but also a chance for greater cooperation between rival factions in Libya. The outcome of Dbeibah’s decision on this proposal could reshape the future of Libya’s energy sector and provide a much-needed boost to the eastern economy.

Stay tuned for more updates as this situation develops.