What Eni will do in Libya on gas
On Saturday 28 January, on the occasion of Giorgia Meloni's visit, Eni should sign an agreement in Libya to increase gas production. All the details
For this Saturday, on the occasion of Prime Minister Giorgia Meloni's visit to Libya, the signing of an agreement for the extraction of natural gas between Eni and the Libyan state oil company National Oil Corporation (NOC) is expected.
WHAT WE KNOW ABOUT THE AGREEMENT
As reported by the Energia Oltre news agency, the agreement is worth 8 billion dollars and concerns the production of 24 million cubic meters of gas per day from two offshore fields in the Mediterranean Sea.
Of the agreement – anticipated in recent days by the president of the NOC, Farhat Omar Bengdara – not much else is known, except that it will concern two already explored fields that should have entered into activity between 2017 and 2018.
MELONI'S "PIANO MATTEI".
Eni's agreement in Libya and President Meloni's visit are part of the broader " Mattei plan ", i.e. the project to diversify fossil fuel supplies and strengthen economic-political relations with the countries of North Africa and the eastern Mediterranean, which has the objective both of guaranteeing Italy's energy security and of transforming our peninsula into a hub for the distribution of gas – and renewable energy, in perspective – towards northern Europe, where the nations are located with higher consumption.
THE INSTABILITY OF LIBYA
Algeria, where Meloni has already gone on 22 and 23 January, seems to be the cornerstone of this plan, which however also involves Egypt, Israel and, of course, Libya, among others.
However, the country's instability – which continues to have two governments, one recognized in Tripoli and one in Tobruch – complicates its role as a reliable supplier of hydrocarbons. For this reason, Foreign Minister Antonio Tajani, who will accompany Meloni on 28 January, said that "the stabilization of Libya is crucial, it is at the center of our talks with all the actors who exert influence over that country".
HOW MANY HYDROCARBONS DOES LIBYA HAVE?
In 2021, Libya's oil reserves amounted to 48 billion barrels, almost 40 percent of those of all of Africa. As for natural gas, however, Libya has reserves of 1.5 billion cubic meters.
Last year – reports Repubblica – the country produced an average of 1 million barrels per day; in 2010 they were 1.65 million. Gas production, on the other hand, rose to 22 billion cubic meters, against 17 billion in 2010.
Two-thirds of the gas that is extracted in Libya is used to fuel national power plants, while one-fifth is destined to feed industries. Only 15 percent of the gas is exported.
ALL ENI ACTIVITIES IN LIBYA
Eni has been present in Libya since 1959, and currently conducts its exploration and development operations in six areas, both onshore ( onshore ) and offshore ( offshore ). In 2021 (the latest data available) the company produced here 24 million barrels of oil and condensates, and 5.6 billion cubic meters of gas. In the same year, it supplied Italy with 3.18 billion cubic meters of gas from Libya.
The Libyan gas produced by the Wafa and Bahr Essalam fields (operated by Mellitah Oil & Gas, an equal joint venture between Eni and NOC) reaches Italy through the Green Stream, the pipeline that connects Mellitah to Gela, in Sicily, crossing the sea Mediterranean: the pipeline is 520 kilometers long and has a capacity of 8 billion cubic meters per year.
THE MEETING BETWEEN DESCALZI AND BENGDARA
Last August, the CEO of Eni, Claudio Descalzi, met in Rome with the president of the NOC to discuss Eni's activities in Libya, on fossil and renewable sources.
On that occasion, Descalzi confirmed in particular the company's intention to start a new series of investments to increase gas production. NOC, on the other hand, has said it wants to bring Libyan oil production up to 2 million barrels a day.
– Read also: What does Italy have to do with the two new gas pipelines in Libya
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/energia/eni-libia-accordo-gas-8-miliardi-dollari/ on Fri, 27 Jan 2023 06:24:24 +0000.