Al-Zawiya refinery shutdown to cause further financial losses in Libya, NOC says

The NOC building in Tripoli. [Photo: Archive]
The National Oil Corporation (NOC) confirmed Monday that it was forced to shut down the Zawiya refinery on Saturday, February 8, 2020 as a result of a valve closure in the Hamada region, on the main pipeline between Sharara field and Zawiya refinery, halting production at the field.

NOC said the refinery’s shutdown will exacerbate the problem of managing, importing and distributing fuel and will lead to very significant costs to the treasury to import additional fuel to replace the refinery’s production.

“This illegal blockade is creating an unprecedented challenge for NOC to continue the supply of fuel to the Libyan people and the country’s vital facilities, such as power stations”, said NOC chairman Mustafa Sanalla.

He added that political interference in the Libyan oil and gas sector will have devastating short- and long-term effects on the Libyan economy and the Libyan people.

“This is developing into a true national crisis. Immediate action is needed to end this irresponsible blockade.” Sanalla said.

NOC explained that Al-Zawiya refinery produces monthly: 120,000 metric tons of diesel, 49,000 metric tons of gasoline, 120,000 metric tons of fuel oil, 6,000 metric tons of liquid petroleum gas (LPG) and 90,000 metric tons of jet fuel.

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