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Italian energy giant Eni signed an $8 billion gas deal with Libya’s state oil company on Saturday during Prime Minister Giorgia Meloni’s visit to Tripoli.
European governments are scrambling to find alternatives to Russian gas after last year’s invasion of Ukraine cut deliveries to less than half of pre-war levels, sending prices skyrocketing to record highs, driving consumers out. Costly state subsidies to protect have been activated.
Eni said this is the first major project in Libya since the early 2000s and involves the development of two offshore gas fields.
“Total gas production from the two structures will begin in 2026 and reach a plateau of 750 million standard cubic feet of gas per day,” Eni said in a statement.
“Production will be secured through two main platforms connected to the existing processing facility at the Melitta Complex, 80 kilometers (50 miles) west of the capital,” it added.
“This project also includes the construction of a carbon capture and storage (CCS) facility at Melitta, which will significantly reduce our overall carbon footprint,” the company added.
“With an estimated total investment of $8 billion, it will have a significant impact on the industry and associated supply chains, and can make a significant contribution to the Libyan economy.”
Eni has an 80% share of Libya’s gas production.
The agreement was signed in the presence of Meloni and her host, Abdulhamid Dubeiba. Abdulhamid Dubeiba heads a UN-brokered national unity government contested by rival regimes in the east.
Her visit is the first by a European leader to war-torn Libya since his predecessor Mario Draghi visited in April 2021.
Meloni also visited Algeria this week to seek supply contracts from Africa’s largest gas exporter.
During her trip to Libya, she was expected to discuss immigration issues amid the growing number of illegal immigrants from Libya to Italy.
Libya is a conduit for thousands of people fleeing conflict and poverty across Africa and seeking refuge across Europe’s Mediterranean Sea.
Meloni’s far-right government took office in October and promised to stop the arrival of more than 105,000 migrants in Italy by 2022.
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