The National Oil Corporation (NOC) released a statement today regarding gas exports via the GreenStream Pipeline to Italy. The statement clarified the facts from the fiction peddled to agitate public sentiment in reaction to the recent acute power cuts and blackout.
These acute power cuts have resulted in angry demonstration which saw youth set fires to tyres and debris to blockade roads, barricaded state and government buildings and stormed the Mellitah Gas Complex to cut off supplies to Italy. The cutting of gas exports to Italy are in reaction to reports that the shortage of gas supplies is part of the reason for power cuts.
The NOC’s statement said:
‘‘The National Oil Corporation (NOC) has followed with grave concern the attack on the Mellitah Complex and the halting of gas supplies to end-users—most notably power generation plants—under the pretext of stopping gas exports. This action was driven by a misconception promoted by some parties, which fuelled public sentiment and spread inaccurate information regarding the agreements governing gas production and exports.
Acting in accordance with its national responsibilities, the NOC affirms that the agreement concluded with the Italian company Eni stipulates the allocation of a specific percentage of total gas production to the Italian partner in exchange for its participation in developing gas fields.
Given the steadily rising domestic demand for gas—particularly during the summer, when gas is primarily used to fuel power plants—the NOC has consistently purchased the majority of the Italian partner's share. This gas is redirected to meet domestic market needs, ensuring a continuous supply to power plants and vital sectors, while also compensating for shortfalls caused by delays in developing certain gas fields.
Consequently, the volumes continuing to flow to Italy via the GreenStream pipeline represent no more than 10% of the Italian partner's total share. These flows are maintained for purely operational and technical reasons related to the system's continuous operation and the pipeline's integrity; completely shutting down and restarting the line would entail significant technical challenges and high costs, alongside operational risks that could compromise the system's safety and stability.
Most of the foreign partner’s share is consumed domestically
Accordingly, NOC categorically denies reports claiming that the majority of produced gas is exported abroad. It clarifies that the vast majority of produced gas—including most of the foreign partner’s share—is consumed domestically to meet citizens' needs and support the electricity grid. Meanwhile, the quantities continuing to flow through the pipeline are limited to the minimum required to maintain the system's safe and stable operation.
Forcibly halting and restarting production is time consuming and costly
The NOC further explains that forcibly halting production or operations is not a simple matter, as some might assume; it cannot be started or stopped with the mere push of a button. Rather, it involves complex technical procedures, and restarting operations requires significant time and exorbitant costs. This is in addition to the substantial economic losses incurred by the state and the sector, as well as technical risks that could compromise facility safety and production sustainability.
The NOC appeals to all Libyan people to exercise awareness and national responsibility, and to shield this vital sector from conflicts or political wrangling. Such measures are essential to preserve the people's assets and the nation's wealth, safeguard energy security, and ensure a continuous supply to the domestic market.
Domestic Gas Supply Agreement (DGSPA) with Italy prioritises meeting national needs
In conclusion, and in fulfilment of its national role in protecting energy security, the NOC affirms that the Domestic Gas Supply Agreement (DGSPA) prioritizes meeting national needs, without conflicting with the contractual obligations stipulated in the Export Gas Supply Agreement (EGSPA). In this context, the Corporation and its foreign partner are mobilizing all technical and operational capabilities to ensure gas supplies to the domestic market and meet the continuous growth in demand—particularly from power plants and industrial sectors—while simultaneously implementing projects to develop existing fields, thereby ensuring production sustainability and bolstering Libya’s energy security.''
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