Libya energy production and infrastructure development

Libya is pursuing strategies to stabilize its domestic energy supply and expand its role in global energy markets. To address electricity supply issues, the country is evaluating the importation of liquefied natural gas (LNG). Technical committees are studying the infrastructure needed for this, including the potential use of a Floating Storage and Regasification Unit (FSRU) and coastal pipelines to connect to the national grid.

Simultaneously, Libyan officials are highlighting the nation’s potential to increase oil and gas exports, particularly to European markets. To attract necessary investment, emphasis has been placed on the need for modernized facilities, protected infrastructure, and a predictable legal environment. Recent developments include the launch of the ‘Sabratha’ gas compression project at the Bahr Essalam field by the National Oil Corporation and Eni, aiming to provide 800 million cubic meters of gas annually for domestic use and export to Italy.

Efforts to stabilize the power sector have intensified following a period of extreme heat and severe blackouts that triggered civil unrest. The Minister of Planning and the Chairman of the General Electricity Company of Libya (GECOL) have initiated the first phase of an ‘Urgent Emergency Plan’ to enhance power generation readiness and repair transmission and distribution networks.

In parallel, reconstruction efforts are being bolstered through international cooperation. Belgasem Khalifa Haftar, Director General of Libya’s Development and Reconstruction Fund, met with a Chinese delegation in Benghazi to discuss leveraging Chinese expertise, technology, and investment for major infrastructure projects.