What does Italy have to do with the two new gas pipelines in Libya
Libya presented the project for two gas pipelines to Greece and Egypt. What will Eni do? All the details
Two new gas pipelines. Libya is preparing a major expansion of its methane export capabilities. To be involved are Greece and Egypt but, in between, also Italy.
GAS PIPELINES TO GREECE AND EGYPT
The announcement came yesterday , when in an interview with the Arab CNBC, the head of the National Oil Corporation of the North African country Farhat Bengdara presented the project to build two further energy connections to Crete (Greece) and Damietta, Egypt.
The words came on the sidelines of the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) in Abu Dhabi. Where the head of the NOC did not exclude participation in the Eastern Mediterranean Natural Gas Forum (EMGF) with Egypt, Greece, Greek Cyprus, Jordan, Italy, Palestine and Israel. Without Turkey.
THE INVOLVEMENT OF ENI
But why are we interested, as Italy? Because this plan adds to the existing relationship with our country. And because Bengdara himself spoke of a renewal of the agreement with Eni for the exploration and extraction of hydrocarbons in the western part of Libya and in the Mediterranean. The value of these assets is $ 8.6 billion.
As we know, Rome and Tripoli are historically linked at the level of geopolitical and energy interests. The Six-legged Dog, led by Claudio Descalzi, leads the Segas consortium, owned by Damietta Lng. And a month ago, Libyan oil minister Mohamed Aoun said that a new pipeline to Italy, parallel to the existing one, could be built within four to six months.
Today, Tripoli exports to Rome range from 250 to 300 million cubic feet of gas per day.
THE ROLE OF TURKEY
The basic problem is that more and more we have to deal with Ankara. Lastly, on 3 October, Tripoli and Ankara signed an agreement that guarantees the Ottoman country the offshore exploration of hydrocarbons. The MoU, initials of Memorandum of Understanding, is directly linked to that of 2019. When the two countries had reached a controversial maritime delimitation agreement that had aroused the wrath of the European Union.
As we analyzed on Energia Oltre , the agreement obviously also affects Eni's actions and interests. Which has been operating in Libya since 1959 with onshore and offshore programs.
THE OIL & GAS SECTOR OF LIBYA
Returning to Libya, current gas production amounts to 3 trillion cubic feet and most of it is consumed locally, the NOC chief added. Currently, Libya's natural gas reserves are estimated to be around 80 trillion cubic feet. And for this year, the country will spend about $ 4 billion on investments and between $ 12 and 15 billion next year with foreign partners.
In the next two or three years, however, oil production will reach 3 million barrels , compared to the current level of 1.2 million barrels per day and the 600,000 barrels of last June. What's more: Libya's oil revenue for 2022 was $ 15.2 billion while total energy sector revenue was $ 15.7 billion.
(Article published on Energia Oltre )
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/energia/libia-gasdotti-grecia-egitto/ on Sun, 06 Nov 2022 07:27:09 +0000.