Page 4 - AfrOil Week 02 2021

AfrOil COMMENTARY AfrOil

Gas
-fired power plant in Benghazi (Photo: Daewoo E&C Vina)
Gas-fired power plant in Benghazi (Photo: Daewoo E&C Vina)
Libyan power plants

still short on gas

Despite the rapid recovery in oil production, NOC is still working to ensure fuel deliveries to GECOL

MORE than two months have passed since the early 2020. Output levels averaged 1.2mn barrels
signing of a ceasefire agreement between war- per day in December, more than 1mn bpd above
WHAT: ring factions in Libya – namely, the UN-backed the record lows below 100,000 bpd registered
NOC and GECOL recently Government of National Accord (GNA) in Trip- earlier in the year.
discussed gas deliveries oli and the Libyan National Army (LNA) headed Meanwhile, GNA and LNA have continued
to the latter firm’s TPPs. by Khalifa Haftar. So far, the ceasefire, which to work together to form a unity government.
formalised the arrangements made between the Earlier this week, representatives of both sides
WHY: parties in September, has held, and as a result the gathered at the offices of the Sirte Oil Company
Fluctuations in oil country’s oil and gas sector has made significant (SOC) in Brega to discuss proposals for the
production tend to affect progress. reunification of the national budget.
gas deliveries to Libyan That progress is evident in the success of These talks will, presumably, address a matter
power stations. efforts by National Oil Corp. (NOC) to bring that has been a sticking point for LNA – namely,
coastal oil export terminals and onshore pro- the sharing of oil revenues among the various
WHAT NEXT: duction facilities back online. parts of the country. Haftar and his allies have
GECOL’s new agreement It is also evident in the fact that NOC and its long argued that Libya’s southern and eastern
with Algeria’s Sonelgaz
may pave the way for subsidiaries have managed to reverse the steep regions receive an unfairly small share of total oil
supply alternatives. decline in production that followed LNA’s sei- export earnings and have called for the revision
zure of key oil and gas infrastructure facilities in of distribution arrangements.

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