NOC outlines plan to tackle looming gas shortage by 2026

The National Oil Corporation (NOC) has submitted a formal proposal to Prime Minister Abdulhamid Dbeibeh to establish a new company, Jelyana, specialising in gas exploration and production, with its headquarters to be located in Benghazi.

The proposal, outlined in a letter signed by Acting NOC Chairman Masoud Suleiman, states that the company will be responsible for developing gas discoveries in Concession MN-7, operated by the Arabian Gulf Oil Company (AGOCO). The project would be implemented in partnership with an international consortium currently under negotiation, comprising Italy’s Eni, France’s TotalEnergies, the UAE’s ADNOC, and the Turkish Petroleum Corporation (TPAO).

According to the NOC, the initiative aims to accelerate the production of untapped gas reserves to achieve domestic energy self-sufficiency, particularly for electricity generation and industrial operations, while reducing reliance on costly diesel fuel.

The letter emphasised that the project would:

• Offset the sharp decline in gas supplies to western Libya projected by the end of 2026.
• Spare the Libyan state from heavy financial burdens caused by fuel imports.
• Ensure compliance with Libya’s export commitments to Italy, reducing the risk of financial penalties.
• Position Benghazi as a key hub for gas development and open the door for shale gas exploration in Ghadames and Murzuq.

Energy analysts view the proposal as part of a broader effort to diversify Libya’s energy production, stabilise domestic supply, and attract foreign investment to support infrastructure development in the country’s east.