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Energy crisis, Italy signs $8 billion gas deal with Libya
Italian energy company Eni and Libya's National Oil Corporation (NOC) signed an $8 billion gas production deal aimed at boosting energy supplies in Europe despite uncertainty and political chaos in the North African country.
The agreement, signed on Saturday during a visit to the capital Tripoli by Italian Prime Minister Giorgia Meloni, aimed to increase gas production for the Libyan domestic market as well as exports through the development of two offshore gas fields.
Production will start in 2026 and reach 21 million cubic meters per day, Eni said in a statement.
"This agreement will enable significant investments in Libya's energy sector, contributing to local development and job creation, strengthening Eni's role as a leading operator in the country," said its chief executive Claudio Descalzi.
During her visit, Meloni met with Libyan Prime Minister Abdulhamid Dbeibah, head of the internationally recognized Government of National Unity (GNU) in Tripoli, for talks that also focused on migration across the Mediterranean.
European countries have increasingly sought to replace Russian gas with energy supplies from North Africa and elsewhere over the past year because of the war in Ukraine.
Italy has already taken the lead in securing gas from Algeria, building a new strategic partnership there that includes investments to help state energy company Sonatrach reverse years of declining production.
Source: AL Jazzera