Libya is now part of the Arab Common Market for Electricity, an initiative launched on December 3, aimed at integrating electricity markets across 11 Arab nations, including the UAE, Egypt and Saudi Arabia. This platform seeks to stabilize electricity supply, reduce costs and promote renewable energy investments, positioning Arab countries as global leaders in clean energy exports, while driving sustainable development and regional economic integration.
Libya’s participation in the Arab Common Market for Electricity aligns with its broader ambitions to modernize energy infrastructure and deepen regional partnerships. The upcoming Libya Energy & Economic Summit (LEES) 2025, scheduled for January 18-19 in Tripoli, will further advance these efforts, offering a platform for stakeholders to explore new opportunities in energy collaboration.
Renewing Oil Collaboration
As a founding member of OPEC, Libya remains a critical player in the global oil market. Producing 1.4 million barrels per day as of December 2024, Libya was OPEC’s top contributor for two consecutive months. With the National Oil Corporation (NOC) targeting daily production of 2 million barrels by 2027, Libya is leveraging its Arab League connections – comprising 22 nations including Egypt, the UAE, Qatar and Algeria – to expand cooperation.
Recent milestones include Algeria’s Sonatrach resuming full operations in Libya’s Ghadames Basin in September 2024, following a 2022 agreement to revitalize oil production. In August 2024, the UAE’s ADNOC acquired a stake in OMV, which is active in Libya’s Sirte and Murzuq Basins, and expressed interest in the NC-7 gas field in Ghadames.
Expanding Gas Investment
Libya is also advancing its gas monetization strategy, aiming to reach 4 billion cubic feet of annual production by 2027. The Structures A&E project, developed by Mellitah Oil & Gas – a joint venture between Eni and the NOC – aims to produce 750 million cubic feet of gas per day by 2026 to supply both domestic markets and European exports.
In response to rising natural gas prices, Libya has intensified collaborations with Arab countries. November 2024 saw Libya’s Minister of Oil and Gas, Khalifa Abdul Sadiq, engage with Qatar’s Minister of Energy, Saad Al-Kaabi, to explore LNG partnerships, leveraging Qatar’s expertise as a global LNG leader. In the same month, Libya’s NOC met with Egypt’s General Petroleum Corporation to boost hydrocarbon investment and address Egypt’s rising energy demands. As Libya aims to diversify revenues and curb routine flaring, its gas initiatives have positioned it as a growing hub for energy investments.