Italy’s Eni Signs 8 Billion Dollars Gas Deal with Libya amid Energy Crunch
The agreement, signed during a visit to the capital Tripoli by Italy’s Prime Minister Giorgia Meloni, aimed to increase gas output for the Libyan domestic market, as well as exports through the development of two offshore gas fields.
Output will begin in 2026 and reach a plateau of 21 million cubic metres (750 million cubic feet) per day, Eni said in a statement.
“This agreement will enable important investments in Libya’s energy sector, contributing to local development and job creation while strengthening Eni’s role as a leading operator in the country,” said its Chief Executive Claudio Descalzi.
During her visit, Meloni met Libya’s Prime Minister Abdulhamid Dbeibah, head of the internationally recognised 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 a lead in sourcing gas from Algeria, building a new strategic partnership there that includes investment to help state energy company Sonatrach reverse years of declining output.
National Oil Corporation head Farhat Bengdara called the 25-year agreement the most important new investment in Libya’s energy sector for a quarter of a century.
However, deals struck in Tripoli may be undermined by Libya’s internal conflict, which has divided the country between rival factions who vie for control of the government and dispute each other’s claims to political legitimacy.
Underscoring the uncertainty, Dbeibah’s own Oil Minister Mohamed Oun had rejected any deal that NOC might strike with Italy, saying in a video on the ministry website such agreements should be made by the ministry.
At a round table with Dbeibah, Meloni repeated her remarks from Algeria, saying that, while Italy wants to increase its profile in the region, it does not seek a “predatory” role but wants to help African nations “grow and become richer”.
Instability, increased domestic demand and underinvestment has hampered Libya’s gas deliveries abroad, according to Matteo Villa of the Milan-based ISPI think tank. New deals “are important in terms of image”, Villa said.
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