Libya’s national oil corporation places the local market first

Libya’s National Oil Corporation (NOC) confirmed that priority in the distribution of gas produced inside Libya is given to meet the needs of the local market, especially power plants, denying what is being circulated about exporting the bulk of gas production abroad through the green gas pipeline, as reported by LY Witness on July 28th. 

In a statement from the NOC, it explained that it followed with concern the attack on the Mellitah complex and suspension of gas pumping operations to consumers, considering that this was based on inaccurate information and misconceptions surrounding the agreements regulating the production and export of gas, which contributed to fuelling public opinion. 

The agreement was signed with the Italian company “Eni” and stipulates that a specific percentage of the total gas production will be allocated to the Italian partner in exchange for its work in developing gas fields, however with the increased local demand, Libya’s corporation has been buying its partners share and directing it towards the needs of the local market. Power plant operations have been seeing compensation for the shortfall resulting from the development in some fields. 

The quantities that are being pumped to Italy through the Green Gas pipeline do not exceed 10% of the total share of Eni, and are maintained for operational and technical reasons that focus on maintaining the safety and ability to continue the operation of the system. It has been noted that the complete shutdown and restart would entail vast challenges and high costs that could bring risk to the safety of the pipeline. 

The corporation emphasized that most of the gas produced, even under the partner’s share, is consumed inside Libya to make sure the needs of citizens are met while supporting the country’s electricity system. It stressed that what is exported through the line represents the minimum amount necessary to ensure the stable operation of the system.

Forced suspension of production would require complex technical arrangements, and a restart could be costly for the country, not only through spending but due to the risks  it would pose on sustained production. 

LY Witness, Maghrebi.org.