Libya launches trial run of gas pipe as NOC pushes for export growth

Libya's National Oil Corporation announced late Monday that it had begun a trial operation of a gas pipeline, which has been delayed for a long time. The company hopes to ease production bottlenecks as well as support future exports.

Since 2011, the political and economic turmoil in North Africa has hampered its ability to attract investment and increase output. NOC, the country's second-largest oil producer and member of OPEC, has been trying to reverse this trend by announcing recent discoveries of oil and gas and awarding exploration blocks in the first licensing round it held since 2007. This is a sign that the NOC wants to attract international partners to help boost its production to 1 billion cubic feet per day, and increase exports to Europe in the early 2030s.

The new 42-inch pipe links the Intisar A/103 gas field to the 'Brega distribution network for about 130 km (80 mi). NOC stated that it would allow the recovery of about 150 million cubic feet per day of gas which had previously been flared. This will boost supplies to domestic customers and release volumes for export.

Libya has estimated gas reserves of?80 trillion cubic foot, but exports via Greenstream to Italy are limited.

NOC stated that the project had been stalled for 16 years and would also eliminate the "back pressure"?which had caused disruptions in operations, forcing some fields to close down. This will improve overall efficiency throughout the gas network. Reporting by Ayman Al-Werfali, Writing by Mohamed Ezz, Editing by David Goodman

(source: Reuters)